W&W Group. Investor Presentation April 2018

Transcription

1 W&W Group Investor Presentation April 2018

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. Acquisitions: 2005 Karlsruher Versicherungsgruppe 2009 Vereinsbank Victoria Bauspar AG 2010 Allianz Dresdner Bauspar AG 1999 Merger of equals of Wüstenrot & Württembergische Starting webbased platform Wüstenrot Wohnwelt Acquisition of treefin AG, creating FinanzGuide App, as financial assistant introducing new digital brand Adam Riese Page 3

4 W&W at a glance Our Group fundamentals: resistant business model Reporting segments & net profits of the W&W Group Home Loan and Savings Life and Health Insurance Property and Casualty Insurance Others Wüstenrot Bausparkasse AG Württembergische Lebensversicherung Württembergische Versicherung W&W Asset Management Württembergische Krankenversicherung Czech Republic Net profit 58.5mn Net profit 31.8mn Net profit 125.8mn 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) 6,1 million customers 6,500 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 Potential Banks Insurance companies Financial sales networks Insurance companies Financial sales networks access to 40 million customers. Brokers 8,000 brokers Cooperations 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 +30% 3.50% 3.23% 3.04% 3.22% 2, % 2.89% 2.82% 2, % 2,42 2,52 2,49 1,88 1,94 1,56 0,50 0,50 0,50 0,50 0,50 0,60 0,60 0, Yield Earnings per Share Dividend per Share Institution Date Analyst Rating Upside Metzler Jochen Buy/Price Schmitt target: Lampe Andreas Buy/Price Schäfer target: Commerzbank Dunst target: Michael Buy/Price Montega Frank Biller Buy/Price target: LBBW Werner Buy/Price Schirmer target: % 18% 15% 20% 19% Page 7

8 W&W at a glance Strong track record; sustainable further profit targeted IFRS Consolidated net profit, in mn long term guidance: W&W 2009 Restructuring program W&W 2012 Expansion program W&W 2015 Program to reinforce our strengths W&W Besser! Strategy implementation Actual consolidated annual net profit Average consolidated net profit Plan consolidated annual net profit Continuous increase in net profit despite global market crisis. * estimate Page 8

9 W&W at a glance W&W constantly exceeds its forecasts IFRS Consolidated net profit, in mn Forecast Forecast 2015 Forecast 2015 Forecast Forecast Forecast 2018: at least 200 mn net profit. Page 9

10 Agenda 1 W&W at a glance 2 Financials 3 Goal & strategy 4 Appendix Page 10

11 Financials Highlights W&W with strong result in. Profitable new business. Notable increase in Property & Casualty Insurance. Digital transformation. + Group net profit with 258.0mn significantly above planned ( 230.0mn) and previous year s result ( 235.3mn) + 153mn increase in equity capital + W&W stock +26%. Dividend increase to 0.65, yield exceeding MDAX and SDAX + Financial result driven by economic environment and stock market development + Again strong underwriting result in the property/casualty insurance segment Administrative expenses above previous year due to investments in digitalization + Productivity growth rate of 5% in plan o Market share and gross new business in home loan savings increased + Volume of home loans increased (incl. third party book) + Casualty insurance premiums increased + Increase in premiums in the health insurance segment, esp. in supplemental agreements Still difficult market environment in life insurance: increase of new business in occupational pension schemes; decrease of new business in single premiums as scheduled + Fund sales above previous year + New brand Adam Riese launched + FinanzGuide for W&W customers online + Wüstenrot Wohnwelt designed (introduced in January 2018) Page 11

12 Financials Results 2014 : Overview Group segments Segment Home Loan and Savings Bank 2014 (in mn) 2015 (in mn) (in mn) (in mn) Segment Life and Health Insurance Segment Property/Casualty Insurance Others/Consolidation Group Net Profit Earnings before income taxes Income taxes Segment Property/Casualty Insurance: Strong underwriting result. Others / Consolidation: Extraordinary income of 18.3mn from sale of V-Bank stake. Income taxes: Reduced due to capitalisation of tax receivables resulting from the offsetting of withholding tax for previous years, the settlement of taxes from previous years and tax-free equity gains. Net profit has notably surpassed previous year s result. Page 12

13 Financials Consolidated net results W&W Group Consolidated net profit Comments consolidated net profit in mn Higher financial result (+ 14.6mn) Lower premiums/contr. earned ( mn) Lower insurance benefits (+ 49.7mn) Higher administrative expenses (- 24.1mn) Other operating result (+ 70.5mn) Lower income tax (+ 21.9mn) Administrative expenses Return on equity* in bn in % % 2.0% +4.8 p.p. 6.8% Depreciation Material Personnel RoE Average RoE (2006-) *Based on average equity per year Page 13

14 Financials Home Loan & Savings segment* Gross new business in mn Net new business in mn Market share, gross in % New business construction financing Core capital ratio*** in bn in % ** **Including brokering for third parties ** ** ***Financial Holding Group *Segment includes Wüstenrot Bausparkasse AG and other operative entities Page 14

15 Financials Life & Health Insurance segment Gross premiums written New business SII-Ratio in bn in mn in % / Q WL Group Unit-Linked Pension Life & Health Single Premium Regular Premium with Trans w/o Trans Add. interest reserve Ø actuarial int. rate* Return new invests Duration WL in mn 1,309 1,600 2,046 in % in % in years * incl. additional interest reserve / interest rate reinforcement Page 15

16 Financials Property & Casualty Insurance segment Net growth in number of contracts in thousand contracts Gross premiums written in bn Corporate Retail Car Gross combined ratio Gross natural disaster claims in % in mn Page 16

17 Agenda 1 W&W at a glance 2 Financials 3 Goal & strategy 4 Appendix Page 17

18 Goal & strategy Top strategic goals long term Above average growth Increased efficiency Digital transformation Growth rate at least twice market growth rate Improve productivity by 5% p.a. Existing business segments New business segments (brandpool) Solid Earnings Consolidated net profit IFRS mn Local GAAP >= 100mn Reliable dividend Goal: Long-term profitable, risk-averse growth above market average. Page 18

19 Goal & strategy Strategy implementation bundled in W&W Besser! Focusing business portfolio Developing a platform on housing Attracting high potential employees W&W Besser! (Strategy implementation) Digital transformation in all segments Emphasising on commercial customers Digitalisation Launching a new digital brand Delighting customers and boosting sales force! Developing new business models! Developing profitable growth fields! Increasing efficiency and service quality! Entering into new cooperations Improving customer experience Reducing administrative expenses Inspiring employees! Laying the IT foundation! Clear objective: W&W as winner of the upheaval in the financial industry. Page 19

20 Goal & strategy brandpool : developing new digital business models brandpool Further digital topics W&W invests in innovative, future-oriented new business models. Page 20

21 Goal & strategy Further implemented strategic activities Wüstenrot Wohnwelt W&W Campus Our new digital platform Wüstenrot Wohnwelt offering for potential real estate buyers and owners real estate search engine third party offerings on the topics of building and living started in January approx. 200,000 page views in first 4 weeks Our new W&W Campus construction phase one completed in time 1,200 new, modern workspaces are in use demolition of further buildings for phase two started Page 21

22 Goal & strategy Outlook 2018 Growth New business expected to rise in all core business segments Investments Increase in overall investments to seize the chances of the digital transformation IFRS 2018 consolidated net profit expected to reach at least 200 mn (long-term goal 220 to 250 mn) Local GAAP Net profits under local GAAP (HGB) at 70 to 90 mn Dividend Reliable dividend policy: at least equal to previous year s level (: 0.65 / share) W&W stems significant future-oriented investments on its own. Page 22

23 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 Page 23

24 Agenda 1 W&W at a glance 2 Financials 3 Goal & strategy 4 Appendix Page 24

25 Appendix Management with extensive financial market expertise CEO Jürgen A. Junker Degree in Business Administration Since 1 April 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 25

26 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 26

27 Appendix Financial calendar /04/2018 Montega Roadshow, Frankfurt 12/04/2018 Montega Roadshow, Hamburg 20/04/2018 Bankhaus Lampe Deutschlandkonferenz, Baden-Baden 27/04/2018 Metzler Roadshow, Switzerland 15/05/2018 W&W AG Quarterly Statement 3M /06/2018 W&W AG Annual General Meeting, Ludwigsburg 13/08/2018 W&W AG Interim Report 6M /09/2018 Berenberg Conference, Munich 13/11/2018 W&W AG Quarterly Statement 9M /11/2018 LBBW German Company Day, London 26-28/11/2018 Eigenkapitalforum, Frankfurt Further information: Page 27

28 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 28

29 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 29