Create a better today Investor Day I 25 May 2016 Agenda Speaker - PowerPoint PPT Presentation

Create a better today Investor Day I 25 May 2016

Agenda Speaker Michael Cameron – Introduction Mark Reinke – Customer experience Morning Tea Gary Dransfield – Customer platforms Amanda Revis – People experience and interview with Trov and 9 Spokes CEOs Steve Johnston – Financial implications Q&A Michael Cameron – Final remarks Investor Lunch 2

Create a better today Michael Cameron, Managing Director & Group Chief Executive Officer

Strategy Create a better today Purpose ‘One Suncorp’ Business model Customer Strategy Capital Cost Culture Resilience Priority 4

Good progress being made with working claims Home active claim volumes (‘000) Motor repairs 50% 70 45% 60 40% 50 35% 40 30% 30 25% 20 20% 10 15% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 (QTD) (MTD) Working Claims Natural Hazard Claims SMART Authorised / Panel Repairers Non-Panel Repairers 5

Business in good shape Expectations for the FY16 result: » Low-single digit GWP growth » Bank APS330 outlined very strong credit quality and growth in Q4 » Stable Life lapse and claims environment » Strong capital position with surplus reflecting:  lower investment yields increasing Life capital;  upfront costs of entry into SA CTP market;  capitalised software costs; and  General Insurance margin . 6

Operating model to deliver ‘One Suncorp’ Suncorp’s ‘customer outcomes’ approach Our new operating model 7

Strategy » Simplification created strong foundations » Market conditions – increased competition , regulatory and political uncertainty and low yields » Rise of Fintech is undermining scale » High levels of customer churn across industry Context 8

Strategy » Shift to creating value for the customer (non-price value) » Reorientated from product to customer outcomes based operating model » Customer platform providing:  Easy access and navigation  Wide range of products and services Evolution 9

Strategy » Maintain momentum and stability » Elevate the customer » Recalibrate costs Priorities 10

Strategy » Increasing Connected Customers :  Meeting more customer needs  Helping navigate complexity and make better choices  Interact digitally and physically  Integrated third party components » Retention and growth » 10% ROE Outcomes 11

Ability to execute the strategy » Large customer base » Trusted by customers / brokers / partners » Strong foundations with significant scale » Unique structure (Insurance / Life / Bank) in stable markets » Strong and unified culture 12

Ability to execute the strategy » History of innovation and execution » Customer and marketplace strategy embraced by employees » Already have platforms e.g. Shannons / APIA » Aligned operating model around the customer » Low risk - doesn’t require large investment program 13

Suncorp’s marketplace Not a Bancassurance, Allfinanz or Aggregator model  Customers BANK GI LIFE Group customers 9 million Bancassurance structure BANK GI LIFE Products Any product Any brand Customers BANK GI LIFE Allfinanz Customer model journey BANK GI LIFE Via stores / app / Suncorp’s marketplace Navigation contact centres Products / brokers Solutions Customers Aggregator Aggregator model Third party Group products Third party A B C D E F products and services services Competitor Products 14

Examples Visualisation showing customer journeys 15

Customer Experience Mark Reinke, Chief Customer Experience Officer

Creating a better today Growing customer connections Our strengths: Customers want: 9 million customers To make informed decisions Trusted brands Simple and easy Simplified systems Trust Strong intermediary Control partnerships Sustainable organic growth 17

Connected Customers Broadening and deepening Increasing frequency customer relationships of interactions + + + & Home Mobility Meeting more needs + + Self Money 18

Connecting customers creates value Significant growth opportunity Meeting more needs 4x >60% 4x + NPAT/ NPAT/ Customer Customer % of customers >30% <5% <1% 1 2 3 4 Needs met 19

Our strategy to grow Connected Customers Customer Marketplace Experience Brands Curate solutions Seamless experience Reposition master brand Deep insights Priority segments Omni-channel Simplified journeys Distinct and complementary New propositions Customer navigation Personalised services Networked 20

Adopting a marketplace approach + » Engaging customers through omni-channel » Curating solutions that customers care about + + Needs » Enabling customers to navigate and make informed decisions + 21

Reinventing and improving customer journeys Complex and disconnected Simplified and connected + 22

Seamless connected experiences Collect & Select + Present + + Needs + + + Part of Suncorp Group Part of Suncorp Group Part of Suncorp Group Everything in one place Aggregated information Decision tools Access to solutions 23

Investor Day Showcases AAMI Hub Making informed On demand decisions insurance 24

Morning Tea Webcast will resume at 11.10am AEST

Customer Platforms Gary Dransfield, Chief Executive Officer, Customer Platforms

AAMI marketplace of useful services People like me My goals Solutions + + + + Easy to navigate Money Home Self Mobility Getting started Help me buy Help me get covered Help me buy Useful solutions See my performance Help me protect Help me stay healthy Help me protect & services Teach my kids to Help me protect Help me renovate Help me find a doctor drive Help me move Save for my health Help me grow Share my car Easy to Single online login to see and manage solutions. Access via store and phone. manage Choose AAMI Lucky Club Rewards rewards 27

Shannons – enabling our customers’ passion + + + Paid enthusiast Needs experiences + Insurance & Loans Auctions Part of Suncorp Group Roadside service Shannons Club 28

New tools to help our SME customers navigate through complexity Suncorp SME dashboard powered by Easy to Protection Operations Customer People Cash flow navigate Help me manage Help me manage Help me manage Reward my Manage service jobs customers delivery my business assets Useful Help me track Help me manage Build strong Help me with Help me save solutions inventory relationships payroll time assets & services Help me get Help me get Help me manage Help me money covered started Know my manage customers See my staff Help me grow Help me protect performance Easy to Single online login to see and manage solutions. Access via store and phone. manage 29

Customer dashboards 30

Everyday services – pathway to paid Free Paid Catalogue Protect Choices Intelligence 31

A new approach to delivering value for customers Present Going forward Product line distribution model Omni-channel model Digital Product Product Product Line Line Line Direct Intermediaries Branches Banking Insurance Contact & Wealth Stores Centres 3 rd Party Partners / Intermediaries 32

Suncorp store 33

Enabled by business model, data and technology Customer centric business model » Holistic approach to customer » Omni-channel » Culture Manufacturing excellence » Efficient manufacturing units » Product management and development » Balance sheet strength Technology, data & corporate functions in place » Modern technology » Data infrastructure » Efficient corporate functions 34

Modern technology stack, innovative culture Banking & Wealth, Insurance & New Zealand Simplified Systems Optimised Platform, API layer, Customer Systems & Platforms Business Intelligence Data Lake Cloud Cloud Environment People and Culture Service Culture and Innovation & Connected Customer 35

Pathway to implementation Old approach Current activities Going forward Branded marketplaces and seamlessly Products and services orientated Creating new sources of value connecting customers to solutions around business lines Concept Group in one place Stores Developing new propositions SME Young Mature Lifestyle Age Banking Insurance & Wealth Identifying new sources of revenue Customer data used in silos AAMI 3 rd Party Annuities Health Building new capabilities Developing commercial framework for marketplace Building infrastructure and capability 36

People Experience Amanda Revis, Chief People Experience Officer

“ “ “Culture eats strategy for breakfast, lunch and dinner.” Peter Drucker Partners 38

“ “ “Culture eats strategy for breakfast, lunch and dinner.” Peter Drucker “ “ “I came to see, in my time at IBM, that culture isn’t just one aspect of the game – it is the game. In the end, an organisation has nothing Partners more than the collective capacity of its people to create value.” Lou Gerstner 39

Confidence for the next phase Track record Customer Innovation Partners of large scale focused change culture 40

Partnering Panel Mr Scott Walchek Mr Mark Estall Founder and Founder and CEO Trov CEO 9 Spokes 41