Permanent TSB Group Holdings PLC · EURONEXT:PTSB
Permanent TSB — Irish Life & Permanent — Investor Day (May 2007)
28 slides from Permanent TSB's investor day presentation, May 2007
Slide 1: Management Briefing
Management Briefing London, May 2007 Group Strategy & Overview Presentation by Denis Casey, Group CEO 1 Management Briefing - May 2007 www.irishlifepermanent.ie
Slide 2: Where we are today
Where we are today Powerfully positioned in Irish Retail Financial Services Market Life & Pensions ¾ Market leader [28% of new business in 2006] ¾ Broadest distribution reach and product offering Retail Banking ¾ Market leader in residential mortgage lending [22% of new lending in 2006] ¾ Fastes
Slide 3: Ireland - land of opportunity
Ireland - land of opportunity Population growth & demographics Projected Population 6,500,000 A combination of natural demographics and 6,000,000 5,500,000 migration will see the population continue to 5,000,000 grow rapidly over the next 10 years 4,500,000 4,000,000 3,500,000 Population forecas
Slide 4: Ireland - land of opportunity
Ireland - land of opportunity Growing population implies a growing domestic customer base Spending by Income Decile (% of State Average) Growth in incomes will add momentum to the rate of growth in 450 Pension Pension Fund Fund domestic demand 400 Domestic Services Hotels & Expenditure Abroad 35
Slide 5: Ireland - land of opportunity
Ireland - land of opportunity Irish Household Assets and Net Worth Forecast € Billions 2005 2015 Middle Ireland (our traditional heartland) beginning to accumulate real wealth creating a significant opportunity Residential Property 542 1059 to develop new wealth management products and services De
Slide 6: Ireland - an opportunity rich environment
Ireland - an opportunity rich environment Retail financial services market in Ireland continues to offer significant growth opportunities for Irish Life & Permanent Building our position in the retail / personal financial services market will remain our strategic priority 6 Management Briefing -
Slide 7: Banking
Banking 7 Management Briefing - May 2007
Slide 8: Ireland's largest Retail Bank
Ireland’s largest Retail Bank We have the opportunity and the capability to build the largest Retail bank in Ireland We define largest simply as the bank with the most personal customers This is our burning ambition, our singular focus and driver of growth 8 Management Briefing - May 2007
Slide 9: Ireland's largest Retail Bank
Ireland’s largest Retail Bank 4 Building blocks make this possible Brand strength Customer acquisition capability Sales management capability Exploit growth opportunities 9 Management Briefing - May 2007
Slide 10: Brand Strength
Brand Strength 4. Summary of Fair Share Personality Dimensions Hugely successful merger Factors players over/under perform within created powerful bank platform Permanent TSB AIBX Bank BOIY Bank ¡ Over Index ¡ Over Index ¡ Over Index – Unhelpful – Safe We have built a modern, – Modern – Youtful
Slide 11: Brand Strength
Brand Strength Customer Service: There is a measurable difference in the quality of the service we provide to our customers Overall Satisfaction with Main Financial Institution July 2005 - June 2006 % very satisfied Jan-Dec Jan-Dec Jan-Dec 2003 2004 2005 40% Overall Overall 42 39 38 36% Bank of Irel
Slide 12: Brand Strength
Brand Strength What our customers say … Customers genuinely feel, I feel that when I walk into a branch I am walking into a friends house for a chat enjoy and acknowledge ptsb staff are great - they are personal the counter staff are brilliant the difference in the they have a very personal touch
Slide 13: Customer Acquisition Capability
Customer Acquisition Capability To become the largest Retail Bank in Ireland requires a relentless focus on new customer acquisition We must attract an additional 500,000 customers We have already created the products, marketing campaigns and sales processes to achieve this We are currently
Slide 14: Sales Management Capability
Sales Management Capability Creating a state of the art sales infrastructure in the bank Making selling a repeatable, high quality process with predictable outcomes 14 Management Briefing - May 2007
Slide 15: Power of Process
Power of Process Irish Life 1990’s Sales process adviser driven Not customer friendly Random outcomes Irish Life today Poorly managed Technology led sales process Low productivity Engaging customer experience Consistent high quality advice Disciplined rigorous management Fivefold
Slide 16: Exploit Growth Opportunities
Exploit Growth Opportunities Current Account Fuel for future growth Residential Mortgages Vigorously protect our market leadership position Commercial Lending Pursuing an opportunity to build a significant business permanent tsb Finance Leading provider of new car finance Bluecube Loans - exploit co
Slide 17: Life & Pensions
Life & Pensions 17 Management Briefing - May 2007
Slide 18: Market Leader
Market Leader New Business 1998 - 2006 30 28% 26% 25% 25 23% Undisputed No. 1 in Life and Pensions 21% 21% 22% Market 20 19% 19% Market Share 28% 15 Perfectly positioned to exploit the 10 1998 1999 2000 2001 2002 2003 2004 2005 2006 opportunities presented by growth markets 800 APE Sales CAGR
Slide 19: Market Leader
Market Leader Divisions Capabilities Markets Powerful distribution Irish Life Retail Middle / Mass Highly effective packaged investment, sales processes savings & pensions products Diversified product Irish Life Corporate offerings Excellent investment performance Irish Life Investment Man
Slide 20: Growth Drivers
Growth Drivers 2 big drivers of growth: Pensions Wealth management 20 Management Briefing - May 2007
Slide 21: Pensions Opportunity
Pensions Opportunity Under-penetration of pensions in workforce and self-employed Under-funding of existing DC pension schemes Strong public policy and fiscal support Vehicle for wealth management and post retirement planning 21 Management Briefing - May 2007
Slide 22: Wealth Management Opportunity
Wealth Management Opportunity Wealth creation and accumulation an emerging theme in Irish market Household wealth to double by 2015 Enormous opportunity for Irish Life & Permanent Priority to expand structures, capability and products to exploit this opportunity: ¾ Creation of new business u
Slide 23: Life Ambition
Life Ambition No company has succeeded in positioning itself in Irish consumers minds as the “Investment Solutions Company” Given the rapid rate of wealth creation and accumulation and the new phenomenon of inherited wealth there is an enormous prize for the company that succeeds in doing this
Slide 24: Irish Life Vision & Strategy
Irish Life Vision & Strategy No single company has succeeded in establishing itself in consumers Brand : minds as the outstanding investment expert in the Irish market Irish Life Brand Research 9. Total Spontaneous Brand Awareness Irish Life brand awareness outside % BOI/BOI Life, 83 top tier grou
Slide 25: Irish Life Vision & Strategy
Irish Life Vision & Strategy No single company has succeeded in establishing itself in consumers Brand : minds as the outstanding investment expert in the Irish market 4. Irish Life Brand Research Summary of Fair Share Personality Dimensions Factors players over/under perform within Irish Life bra
Slide 26: Brand - work to be done
Brand - work to be done Opportunity to develop and promote Irish Life as the investment solutions company for an increasingly wealthy Ireland Significant project already underway to map out future brand strategy Major investment planned in Irish Life brand 26 Management Briefing - May 2007
Slide 27: Creating the Investment Solutions Company
Creating the Investment Solutions Company Divisions Capabilities Markets Powerful distribution Middle / Mass Irish Life Retail packaged investment, Highly effective savings & pensions sales processes products Diversified product Irish Life Corporate offerings Mass affluent / HNW Excellen
Slide 28: Driving Growth
Driving Growth Clear and focused strategy TARGETS Strong market positions Sales 15 - 20% Ambitious but achievable targets Earnings 12 - 14% Dividend 10% + Create high performance culture ROC (blended) 16% Protect strong risk management and cost disciplines 28 Management Briefing -