W&W Group 9M Financial Results. Investor Presentation LBBW German Company Day London, 16 th November 2017

Transcription

1 W&W Group 9M Financial Results Investor Presentation LBBW German Company Day London, 16 th November 2017

2 Agenda 1 W&W at a glance 2 Financials 3 Goal & strategy 4 Appendix Page 2

3 W&W at a glance Our roots: Wüstenrot & Württembergische 1921 Wüstenrot, Germany s first home loan and savings bank, was founded Württembergische Privat- Feuer-Versicherungsgesellschaft was established, the oldest private property insurance in southern Germany, 1833 Allgemeine Rentenanstalt, the first pension insurance in Germany was established Both companies formed the Württembergische Insurance Group Merger of equals of Wüstenrot & Württembergische. Acquisitions: 2005 Karlsruher Versicherungsgruppe 2009 Vereinsbank Victoria Bauspar AG 2010 Allianz Dresdner Bauspar AG Page 3

4 W&W at a glance Our Group fundamentals: resistant business model Reporting segments & net profits 2016 of the W&W Group Home Loan and Savings Life and Health Insurance Property and Casualty Insurance Others Wüstenrot Bank AG Pfandbriefbank Württembergische Lebensversicherung Württembergische Versicherung W&W Asset Management Wüstenrot Bausparkasse AG Württembergische Krankenversicherung Czech Republic Net profit mn Net profit mn Net profit mn Bausparkasse Mortgage Bank No. 2 in German home loan savings (14.2% market share) No. 9 in German property & casualty insurance (2.5% market share) No. 13 in German life & health insurance (2.3% market share) 6 million customers 6,800 employees in Germany 6,000 tied agents Core market Germany Major offices in Stuttgart and Ludwigsburg Additional business in Czech Rep. W&W s product range focuses on life issues such as housing, assets, protection and a sustainable future. W&W is well diversified to face challenging market conditions Page 4

5 W&W at a glance Our sales force: broadly positioned to capture further growth Own sales channels ~ 3,000 tied agents Württembergische ~ 3,000 tied agents Wüstenrot Direct channel Partnerships and cooperations Banks Insurance companies Financial sales networks Insurance companies Financial sales networks Brokers 8,000 brokers Cooperations Potential access to 40 million customers Page 5

6 W&W at a glance Our shareholder structure: reliable and long-term oriented Wüstenrot Stiftung % % Wüstenrot and Württembergische merged on 1 January The company went public on 9 September Since then W&W registered shares have been officially listed in Stuttgart and Frankfurt. W&W AG is part of the SDAX since March Wüstenrot Holding AG 39.91% WS Holding AG 26.40% Wüstenrot Stiftung holds its indirect stake in W&W in two companies. Wüstenrot Holding AG owns 39.1% and the WS Holding AG owns 26.4% of the shares. Both companies are solely owned by Wüstenrot Stiftung. Wüstenrot & Württembergische AG Other Institutional 10.00% 0.21% Treasury Shares 23.48% Freefloat Wüstenrot Stiftung is a private non-profit foundation. It is established and maintained exclusively for cultural, artistic, scientific, educational and charitable purposes. Around 70% of its funds are used to initiate, plan and realise its own foundation projects. With the remaining 30%, it awards financial sponsorships for the implementation of outstanding ideas and projects from other institutions. Wüstenrot Stiftung as indirect anchor investor ensures the stability of the W&W Group Page 6

7 W&W at a glance Our share: Attractive to long-term investors Dividend policy: at least to maintain our dividend 2.63% 1,88 0, % 1,94 0, % 2,42 0, % 1,56 0,50 +20% 3.04% 2.82% 2,88 2,52 0,50 0, % 2,49 0, Yield Earnings per Share Dividend per Share 2016 Institution Date Analyst Rating Metzler Jochen Schmitt Hold / Price target: Lampe Andreas Schäfer Buy / Price target: Commerzbank Michael Dunst Buy / Price target: Montega Frank Biller Buy / Price target: LBBW Werner Schirmer Buy / Price target: Page 7

8 Agenda 1 W&W at a glance 2 Financials 3 Goal & strategy 4 Appendix Page 8

9 Financials W&W with solid group net profit in mn Net profit 4bn Gross premium written (Life, Health, P/C) 14bn New home loan savings, gross 5.4bn New construction financing business (including brokering for third parties) mn Sales of own and third-party investment funds W&W again outperformed on its target forecast Page 9

10 Financials Results : Overview Group segments 2014 (in mn) 2015 (in mn) 2016 (in mn) Segment Home Loan and Savings Bank Segment Life and Health Insurance Segment Property/Casualty Insurance Others/Consolidation Group Net Profit Earnings before income taxes Income taxes In 2016, consolidated net profit reached 235.3mn, which was above forecast (> 220mn). Especially, the underwriting income from property/casualty insurance was excellent again. Moreover, general administrative expenses were further reduced. The lower financial result together with a reduced tax income in the segment Others had negative impact on the Group net profit. Page 10

11 Financials W&W is on track in 9M 2017 Group segments 9M 2016 (in mn) 9M 2017 (in mn) Segment Home Loan and Savings Bank Segment Life and Health Insurance Segment Property/Casualty Insurance Others/Consolidation Group Net Profit Earnings before income taxes Income taxes Group level 9M 2017 net profit +19% above last year s 9M result. Property & Casualty Insurance segment as main profit driver (+30%) due to a significantly increased financial and underwriting result. Life & Health Insurance segment with moderate decrease of 12.6mn. Home Loan & Savings segment contributed 42.6mn, 5.3mn less than in 9M Special income of 25.8mn due to sale of V-Bank shares (~ 35%) Group outlook: net profit FY 2017 is expected to notably surpass FY 2016 result of 235mn. Page 11

12 Financials Consolidated net results W&W Group Consolidated net profit in mn % M M 2017 Comments consolidated net profit 9M 2017 Higher financial result (+ 45.1mn) Lower premiums/contribution earned (- 92.6mn) Higher insurance benefits (- 34.3mn) Other operating result (+ 75.0mn) Other positions (- 3.6mn) Administrative expenses Return on equity* in bn % 0.79 in % % 2.0% +440 bps 6.4% 2014 Depreciation 2015 Material 2016 Personnel 9M M RoE Average RoE ( ) *Based on average equity per year 2016 Page 12

13 Financials Home Loan & Savings segment* Gross new business in mn Net new business in mn Market share, gross in % M M M M M M 2017 New business group construction financing Core capital ratio*** in bn % 4.1 in % bps ** 2016** **Including brokering for third parties 9M 2016** 9M 2017** M M 2017 ***Financial Holding Group *Segment includes Wüstenrot Bausparkasse AG and other operative entities Page 13

14 Financials Life & Health Insurance segment Gross premiums written New business SII-Ratio in bn in mn in %, as of June M M M M 2017 WL Group Unit-Linked Pension Life & Health Single Premium Regular Premium w/o Trans with Trans Expenditures on insurance operations WL Return new invests Duration WL in % in % in years M M M 2017 Ratio of administrative expenses Ratio of acquisition costs Page 14

15 Financials Property & Casualty Insurance segment Number of contracts Gross premiums written in million contracts +1.6% in bn % M M Corporate M M 2017 Retail Car Combined ratio (gross) in % Damage from natural disasters in mn p.p % M M M M 2017 Page 15

16 Agenda 1 W&W at a glance 2 Financials 3 Goal & strategy 4 Appendix Page 16

17 Goal & strategy Focused long-term strategy tackles market challenges Challenges Strategy Goal Low interest rate environment Focussing business portfolio Developing a platform on housing Attracting high potential employees Emphasising on commercial customers Digitalisation Lauching a new digital brand Long-term profitable, riskaverse growth above market average Changing customer behaviour Entering into new cooperations Improving customer experience Reducing administrative expenses Customers & growth Efficiency and earnings power Page 17

18 and leads to concrete actions in 2017 Customers & growth Emphasising on commercial customers Target group products Commercial lending Efficiency & earnings power Focussing business portfolio Sale of V-Bank Evaluation of sale options of the Wüstenrot Bank Developing a platform on housing Wohnwelt Improving customer experience Login on our group platforms Mein Wüstenrot and Meine Württembergische Launching a new digital brand For high-web-affinity users and customers Digitalisation Entering into new cooperations treefin dbb Beamtenbund Verdi Attracting high potential employees Building a new Campus University cooperation In-house digitising exhibition Reducing administrative expenses 5% cost reduction per year Page 18

19 Goal & strategy Outlook 2017 Growth Investments Accelerate growth in all main reporting segments New business will rise in all segments in 2017 Administrative expenses are set to increase slightly due to an increase in new business and additional investments IFRS 2017 Consolidated net profit expected to be noticeably above 2016 s profit ( 235.3mn) Local GAAP Increase of net profits under local GAAP (HGB) Dividend Reliable dividend policy: at least equal to previous year s level 2017 Dividend at least equal to 2016 ( 0.60 per share) Business performance in the year to date does not necessarily mean that income will develop in the same way beyond 2017 Page 19

20 Thank you for your kind attention! Online Report German + English Fact Sheet German + English IR Newsletter For further information please contact: Michael Ellwanger, Head of Investor Relations ir@ww-ag.com ww-ag.com Page 20

21 Agenda 1 W&W at a glance 2 Financials 3 Goal & strategy 4 Appendix Page 21

22 Appendix Management with extensive financial market expertise CEO Jürgen Albert Junker Degree in Business Administration Since 1 April 2016 Board Member of W&W AG, responsible for Strategy, Audit, Legal and Compliance, Digital Customer Office, Investor Relations Board Member of VHV Allgemeine Versicherung AG and VHV Lebensversicherung AG for Sales and Group Investments 2007 Head of Department Corporate Sales Management, VHV Allgemeine Versicherung und VHV Lebensversicherung CFO Dr. Michael Gutjahr Degree in Mathematics Since 2009 Board Member of W&W AG and Wüstenrot Bausparkasse AG, responsible for Finance, Risk Management and Human Resources Since 2002 Board Member of Württembergische Versicherung AG and Württembergische Lebensversicherung AG Board Member of Wüstenrot Bausparkasse AG CIO Jens Wieland Degree in Business Informatics Technology Since 2014 Board Member of Württembergische Versicherung AG and Württembergische Lebensversicherung AG Since 2012 CIO of W&W AG, responsible for IT and Operations Board Member of AXA AG Board Member of Winterthur IT Development AG Page 22

23 Appendix supported by highly qualified top management level CEO home loan & savings Bernd Hertweck Banking Specialist Head of BausparBank Department and CEO of Wüstenrot Bausparkasse AG Since 2013 CEO of Wüstenrot Bausparkasse AG, general agent/plenipotentary of Wüstenrot Bank AG Pfandbriefbank Board Member of Wüstenrot Bausparkasse AG Since 1994 diverse managerial positions at Schwäbisch Hall Bausparkasse CEO insurance Norbert Heinen Degree in Mathematics and Physics Head of Insurance Department and CEO of Württembergische Versicherungen Since 2010 CEO of Württembergische Versicherungen Since 1995 Board Member of Deutsche Aktuarvereinigung (DAV), CEO Since 1993 diverse managerial positions in the financial sector General Rep. Jürgen Steffan Banking Specialist Since 2006 Member of the Executive Board of Wüstenrot Bausparkasse AG Since 2009 General agent of Wüstenrot Bank AG Pfandbriefbank Since 2013 General representative of Wüstenrot & Württembergische AG Page 23

24 Appendix Financial calendar 2017/ /11/2017 Eigenkapitalforum, Frankfurt 11-12/01/2018 ODDO BHF Kapitalmarktkonferenz, Lyon 28/03/2018 W&W AG Annual Report /05/2018 W&W AG Interim Management Statement Q1/2018 Further information: Page 24

25 Appendix The basic idea of German home loan & savings contracts Contract volume Savings period Bausparer * put aside 40-50% of beforehand agreed contract volume at relatively low interest rates If minimum savings threshold is reached, allotment of residual amount takes place Possible: Bullet loan in advance which is redeemed by home loan & savings activity Annuity with secured interest rates, governmental sponsorship and special repayments (all parameters fixed prior to savings period) Well-established pillar in German retirement planning W&W offers specified contract designs Loan period *People who strive to build or purchase their own property Time Page 25

26 Disclaimer This presentation and the information contained herein, as well as any additional documents and explanations (together the material ), are issued by Wüstenrot & Württembergische AG ( W&W ). This presentation contains certain forward-looking statements and forecasts reflecting W&W management s current views with respect to certain future events. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding W&W s future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where W&W participates or is seeking to participate. The W&W Group s ability to achieve its projected results is dependent on many factors which are outside management s control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions. The following important factors could cause the Group s actual results to differ materially from those projected or implied in any forward-looking statements: the impact of regulatory decisions and changes in the regulatory environment; the impact of political and economic developments in Germany and other countries in which the Group operates; the impact of fluctuations in currency exchange and interest rates; and the Group s ability to achieve the expected return on the investments and capital expenditures it has made in Germany and in foreign countries. The foregoing factors should not be construed as exhaustive. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forwardlooking statements as a prediction of actual results. All forward-looking statements included herein are based on information available to W&W as of the date hereof. W&W undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward-looking statements attributable to W&W or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The material is provided to you for informational purposes only, and W&W is not soliciting any action based upon it. The material is not intended as, shall not be construed as and does not constitute, an offer or solicitation for the purchase or sale of any security or other financial instrument or financial service of W&W or of any other entity. Any offer of securities, other financial instruments or financial services would be made pursuant to offering materials to which prospective investors would be referred. Any information contained in the material does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the definitive offering materials. The information herein supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions, including any offering materials. W&W is not obliged to update or periodically review the material. All information in the material is expressed as at the date indicated in the material and is subject to changes at any time without the necessity of prior notice or other publication of such changes to be given. The material is intended for the information of W&W s institutional clients only. The information contained in the material should not be relied on by any person. In the United Kingdom this communication is being issued only to, and is directed only at, intermediate customers and market counterparties for the purposes of the Financial Services Authority s Rules ("relevant persons"). This communication must not be acted on or relied on by persons who are not relevant persons. To the extent that this communication can be interpreted as relating to any investment or investment activity then such investment or activity is available only to relevant persons and will be engaged in only with relevant persons. Page 26