Foundations for growth 1 Financial Solutions for International Clients
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 conditions, business performance and results of Hansard Global plc. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the control of Hansard Global plc, including amongst other things, Hansard Global’s future profitability, competition with the markets in which the Company operates and its ability to retain existing intermediary clients and win new intermediary clients, changes in economic conditions generally or in the life assurance, savings and investment products sectors, terrorist and geopolitical events, changes in legal and regulatory regimes and practice, the ability of its owned and licensed technology to continue to service developing demands, changes in taxation regimes, exchange rate fluctuations, and volatility in the Company’s share price. As a result, Hansard Global’s actual future financial condition, business performance and results may differ materially from the plans, goals and expectations expressed or implied in these forward-looking statements. Hansard Global undertakes no obligation to publicly update or revise forward-looking statements, except as may be required by applicable law and regulation (including the Listing Rules). No statement in this presentation is intended to be a profit forecast or be relied upon as a guide to future performance. In particular, past performance is no guide to future performance. 2 Financial Solutions for International Clients
Agenda 1 Introduction & Overview 2 Our Business Strategy 3 Progress on New Business Strategy 4 Results - H1 2015 5 Summary & Outlook 3 Financial Solutions for International Clients
Meet the team Introduction and Overview Gordon Marr Chief Executive Officer Vince Watkins Chief Financial Officer Graham Morrall Global Sales & Marketing Director 4 Financial Solutions for International Clients
Overview H1 2015 Highlights Financial highlights: Encouraging • EEV profit: £6.6m (H1 2014: Control functions progress on strategy and governance £2.2m loss) implementation structures enhanced • New Business: £29.4m (PVNBP) (H1 2014: £55.2m) Hansard Europe Strong positive • New business Q2 2015 + 13% well-capitalised and cash flows over Q1 2015 profitable • CEC liability remains at £5.0m No material Strategic focus – settlement discussions with movement in on strong market relation to Japan opportunities HMRC policy book • Increased interim dividend • IFRS profit £6.6m in line with last year 5 Financial Solutions for International Clients
Our Business Strategy 6 Financial Solutions for International Clients
Strategic Objectives Our Business Strategy To add significant scale to the business, on a more diversified basis, through organic growth at acceptable levels of risk & profitability To be the preferred choice of distributors when recommending international savings and investment products to their clients 7 Financial Solutions for International Clients
Strategic Objectives Our Business Strategy Better value More long-term For clients relationships with distributors A more visible Excellent profile in the market client service Market leading online Motivated & engaged systems workforce 8 Financial Solutions for International Clients
Progress on New Business Strategy 9 Financial Solutions for International Clients
More long-term relationships with distributors Rebuilt Sales Rebuilding Team Distribution Increased Market Awareness Activity since launch of Enhanced Refreshed All strategy OnLine Products systems 10 Financial Solutions for International Clients
Capturing strong market opportunities Rebuilding distribution We added 33 new Terms Of Business in 2014 with networks representing over 200 new individual brokers to our available distribution. We have now added 53 new Terms Of Business with networks – representing over 400 new individual brokers to our available distribution . 11 Financial Solutions for International Clients
Capturing strong market opportunities Rebuilding distribution….continued North Asia + 12 Europe Based + 12 S.E Asia + 10 Latin America + 4 ME & Africa + 15 12 Financial Solutions for International Clients
Better value for clients Proposition improvements over the last 12 months New • New Contractual and Non Contractual Savings Plans • New Portfolio Bond launched in February Products • Completes refresh of all products – more competitive • 90 new funds added to increase policyholder opportunities New • New Shariah compliant funds Funds • Q4 - will launch risk rated portfolios to support pensions business Events New • Independent consultant to support QROPs / SIPPS business - to be launched in Q3 Services • Agreements with 12 Trust Companies for QROPs / SIPPS business 13 Financial Solutions for International Clients
More Visible profile in the market Marketing improvements over the last 12 months • Refreshed Brand Brand • Refreshed Corporate website – More changes to come • Refreshed Literature • New Corporate Presentations • New Product Presentations • New Hansard OnLine Presentation • International Adviser – Advertisements and events Promotion • Local marketing – including IOM • New Corporate and Product presentations Events 14 Financial Solutions for International Clients
Market leading OnLine systems System improvements over the last 12 months • New Hansard OnLine Presentation • New languages • Refreshing Client and Broker Sites • Hansard OnLine “Lite” in development to better showcase HOL to potential brokers • Payment card processing • • New languages Broker hierarchy 15 Financial Solutions for International Clients
Foundations for growth Rebuilt Sales Rebuilding Team Distribution Increased Market Awareness Progress since launch of Enhanced Refreshed All strategy OnLine Products systems 16 Financial Solutions for International Clients
Results – H1 2015 17 Financial Solutions for International Clients
Summary Results – H1 2015 Results – H1 2015 H1 2015 H1 2014 New business sales – Regular premiums £17.6m £44.4m New business sales – Single premiums £11.8m £10.8m New business margin (-3.9)% 7.5% IFRS profit after tax £6.6m £6.6m EEV profit / (loss) after tax £6.6m (£2.2m) Interim dividend per share – payable 2-Apr-15 3.5p 3.4p H1 2015 FY 2014 European Embedded Value £204m £204m Assets Under Administration £924m £943m 18 Financial Solutions for International Clients
Diversified New Business Flows Results – H1 2015 Present Value of New Business Premiums (PVNBP) H1 2015 H1 2014 New business £m £m flows in H1 2015 Latin America 11.1 16.6 reflect regional market Far East 7.1 26.4* development Middle East and Africa 4.0 0.9 activities Rest of World 7.2 11.3 PVNBP 29.4 55.2 * H1 2014 includes £10.9m from a Japanese distributor that suspended operations in that period 19 Financial Solutions for International Clients
New Business Flows Results – H1 2015 H1 2015 H1 2014 Reductions in Present Value of New Business Premiums £m £m new business Regular premiums 17.6 44.4* margin reflects impact of Single premium 11.8 10.8 reduced sales PVNBP 29.4 55.2 volumes New Business Margin (PVNBP basis, after (3.9%) 7.5% tax) * H1 2014 includes £10.9m from a Japanese distributor that suspended operations in that period 20 Financial Solutions for International Clients
Positive Operating Cash Flows Results – H1 2015 H1 2015 H1 2014 £m £m Operating cash surplus 13.8 19.0 Interest and other income 0.4 0.5 Shareholder cash at 31 Cash inflow 14.2 19.5 December 90 81.1 Investment in new business (3.8) (9.0) 80 70 Corporation tax paid (0.0) (0.2) 60 £m 50 Capital expenditure (0.1) (0.7) 40 Net Cash inflow before dividends 10.3 9.6 30 20 Dividends paid (6.9) (6.5) 10 - Net Cash flow for the period 3.4 3.1 2010 2011 2012 2013 2014 Cash flows support investment in long-term contracts and dividends 21 Financial Solutions for International Clients
Abridged Income Statement - IFRS Results – H1 2015 H1 2015 H1 2014 £m £m Strategic and Fees and commissions 26.7 27.9 other Investment and other income 1.0 0.1 expenditure is an investment in 27.7 28.0 future growth. Origination costs (10.5) (10.6) Administrative expenses before settlements Profit supports (10.6) (9.6) and discontinued activities increased interim dividend. 6.6 7.8 Settlements and discontinued activities (0.0) (1.1) Profit for the period before taxation 6.6 6.7 Tax 0.0 (0.1) Profit for the period 6.6 6.6 22 Financial Solutions for International Clients
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