Annual Report 2017 W&W Group. Analyst Conference Call March, 28 th 2018

Transcription

1 Annual Report W&W Group Analyst Conference Call March, 28 th 2018

2 Agenda 1 Overview Group Financial Results 2 Segment Details 3 Group Strategy and Outlook Page 2

3 Overview Group Financial Results 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 3

4 Overview Group Financial Results Results Overview Group segments (in mn) (in mn) Delta (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 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 4

5 Agenda 1 Overview Group Financial Results 2 Segment Details 3 Group Strategy and Outlook Page 5

6 Segment Details Consolidated net results W&W Group Consolidated net profit Higher financial result (+ 14.6mn) New construction finance Gross premiums Lower premiums/contribution earned ( mn) 5,389 5,518 3,989 3,874 2,304 2,116 Lower insurance benefits (+ 49.7mn) 1,685 Life 1,758 P/C Higher administrative expenses (- 24.1mn) Other operating result (+ 70.5mn) Lower income tax (+ 21.9mn) Administrative expenses 1, , SII-Ratio in % / Q Result significantly above previous year WL Group Depr. Mat. Pers. with Trans w/o Trans Page 6

7 Segment Details Home Loan & Savings segment Segment net profit Gross new business Net new business Lower net financial result (- 23.0mn) 13,551 13,569 11,902 11,521 Lower net commission income (- 1.6mn) Higher administrative expenses (+ 3.7mn) Leverage ratio Core capital ratio Higher other operating income (+ 28.1mn) Higher income tax (- 7.4mn) in % in % Result slightly below previous year BSW FHG BSW FHG Page 7

8 Segment Details Life & Health Insurance segment Segment net profit 49.7 Higher financial result (+ 37.2mn) Higher result from properties held for sale (+ 23.3mn) Additional interest reserve 1, ,309 2, ,600 New business contributions Lower earned premiums ( mn) Lower insurance benefits (+ 70.2mn) Higher administrative expenses (- 4.3mn) Administrative expenses Appropr Opening Return on new investments in % Other positions (+ 43.3mn) Result below previous year Other Employees Page 8

9 Segment Details Property & Casualty Insurance segment Segment net profit Higher financial result (+ 10.0mn) Lower net commission income (- 7.8mn) Higher net earned premiums (+ 54.4mn) Insurance contracts in mn pcs Gross premiums 1,678 1, Corp. Priv. Car Higher insurance benefits (- 29.9mn) Net natural disaster claims Combined ratio in %, gross Higher admin. expenses (- 22.8mn) Lower income tax (+ 6.2mn) Result significantly above previous year Costs Claims Page 9

10 Agenda 1 Overview Group Financial Results 2 Segment Details 3 Group Strategy and Outlook Page 10

11 Group Strategy and Outlook 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 11

12 Group Strategy and Outlook 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 12

13 Group Strategy and Outlook brandpool : developing new digital business models Our new business segment brandpool initial scope defined managing director appointed brandpool Our new digital brand Adam Riese launched in October with a personal liability insurance already acquired over 6,000 contracts and over 200,000 in premiums just started sale of second product (legal protection insurance) Our new innovation Nist is a digital, personal companion for buying the desired real estate first features are live Further digital topics Our independent insurance broker treefin over 20,000 app users complete takeover of outstanding shares Our new digital financial assistant Finanzguide launched in February for W&W customers over 5,000 installs in first month W&W invests in innovative, future-oriented new business models. Page 13

14 Group Strategy and Outlook 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 around 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 14

15 Group Strategy and Outlook 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 200mn (long-term goal 220 to 250mn) Local GAAP Net profits under local GAAP (HGB) at 70 to 90mn 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 15

16 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 16

17 Appendix Financial calendar /04/2018 Commerzbank Roadshow, London 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 17

18 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 forward-looking 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 18