OPEN FINANCE Q GROUP RESULTS

Transcription

1 OPEN FINANCE Q GROUP RESULTS Presentation of financial results for investors and analysts Warsaw, May 13, 2016

2 BASIC FINANCIAL INFORMATION - OPEN FINANCE GROUP CHANGE DATA AT THE END OF FIRST QUARTER % * Branches (151) + 0,4% * Equity (394,1 mln zł)***** - 75,5% ** Net profit (1,597 mln zł)***** - 2,1% ** Revenue (85,1 mln zł) - 35,3% ** EBITDA (11,6 mln zł) *** - 6,2 p.p. ** ROE (1,6%) **** * compared to data as at 31 December 2015 ** compared to data for Q *** EBITDA - earnings before interest, tax, depreciation and amortisation **** ROE - return on equity calculated as relation of annualised net profit for the period to equity as at the beginning of the period ***** attributable to shareholders of the parent company Page 1

3 MISSION STATEMENT AND ORGANIZATION STRUCTURE OF THE GROUP MISSION We are the leader in comprehensive financial and real estate intermediation in Poland - " number 1 " on the market - offering our customers a wide, diversified range of products and solutions. We support clients and their families at every stage of life, offering a comprehensive range of products, fully adapted to their needs, expectations and opportunities, ensuring the transparency and security of their transactions. Our priority is to build long-term relationships with our customers and we make every effort to offer financial and real estate solutions in an innovative way. In our work we follow high standards of service, quality and confidence that every client will receive a proposal for a suitable product financial or a real estate. VISION Pride, responsibility and motivation of employees make that the customers services are and will be at the highest level and will set service standards across the financial and real estate markets. We are and we intend to strengthen ourselves as a reliable and trusted partner in the industry, but also create a positive and responsible attitude. We always want to be one step ahead and implement in our companies innovative, effective projects. Our advantages: professional, well-trained and competent staff, respect and mutual understanding - in relationships with customers, business partners and employees, the multiplicity and diversity of financial products available in one place. Page 2

4 STRUCTURE OF THE GROUP 100% 76,25% 49% 49% 9,99% 9,99% Group Structure as at 12 May As at 12 May 2016 Open Finance S.A. held together directly and indirectly 14.89% of the share capital of Noble Funds Towarzystwo Funduszy Inwestycyjnych S.A. Page 3

5 KEY ACTIVITIES WITHIN THE GROUP IN THE FIRST QUARTER KEY ACTIVITIES WITHIN THE GROUP IN THE FIRST QUARTER On 27 January 2016, there was a merger of HB Finanse Sp. z o.o. with Open Finance S.A. The aim of the merger was the systematization of business activity - Open Finance in the area of financial intermediation and Home Broker in the area of real estate brokerage; As a result of the multi-stage analysis of the profitability of branches, by the end of March 2016 we made the optimization of the network of Open Finance, as a result of which the branches in small and medium-sized cities have been transferred to the mobile network Open Direct. Network Optimization took reach 30 branches and 140 advisors and was aimed at reducing the fixed costs of the network of Open Finance; Further integration of the network of Open Finance and Home Broker to increase the efficiency of their existing customer base and to optimize the cost of their acquisition ; Further development of the external structure of sales Open Partners in the Open Finance and HB Partners within the Home Broker - as a market integrator of small business financial advisory and market real estate brokerage dedicated to the service of the primary market, based on a " success fee" of sales ; The development of intermediation in the field of company products; Development of financial intermediation market in small and medium-sized cities with the expansion of the mobile network. Page 4

6 OPEN FINANCE GROUP RECEIVED AWARDS 1. Konsumencki Lider Jakości st place in the category of independent financial advisor 2. Gepard Biznesu 2014 prize awarded in 2015 by Instytut Nowoczesnego Biznesu 3. Finansowa Marka Roku 2015 in the category of Financial Advisory Gazeta Finansowa 4. Gwiazda Jakości Obsługi prize awarded by VSC Group 5. The most valuable Polish Brand 2015 in the category of finance - 7th place in the ranking of Rzeczpospolita 6. First place in the ranking of Gazeta Finansowa - companies from the consulting industry. Page 5

7 CONSOLIDATED NET PROFIT OPEN FINANCE GROUP (attributable to shareholders of the parent) 76% % PLN '000 Q1 Q2 Q3 Q4 Q The decrease in consolidated net profit for Q as compared to Q by PLN thousand i.e. 76% due to: An additional tax burden on financial institutions of Open Life TUŻ S.A in the amount of PLN thousand, which caused a decrease in the Group's consolidated net profit by PLN thousand; Decrease in revenues from the sale of investment products (mainly structured and regular products) by PLN thousand (i.e. 44%) as a result of changes in the insurance law and implementation of new investment insurance products, which were introduced by the TU at the end of January 2016; 57% A decrease in revenue from the sale of deposits by PLN thousand (i.e. 80%) in connection with a change of cooperation with the supplier of products. Increase in advisor s commission costs by PLN thousand as a result of higher sales volumes realized by the mobile and partners networks in Q1 2016, where the average commissions in these networks, because of their business model of low fixed costs are 60 % and 80 % and are higher than the average commissions of the company, which is 50%. Page 6

8 PLN'000 CONTRIBUTION OF EACH COMPANY TO CONSOLIDATED REVENUE OF OPEN FINANCE GROUP COMPANIES' CONTRIBUTION TO THE CONSOLIDATED REVENUE IN Q (2 427) OF 57% HB OF TFI HB Finanse * cons adjustments Consolidated revenue Consolidation adjustments to revenue in 2016 concern the elimination of transactions within the Group. * Revenue ggenerated in January Page 7

9 PLN'000 Mortgages Cash loans Real estate intermediation Asset and funds management Structured products Insurance Regular premium unit-linked policies Deposits Total sales revenue REVENUE STRUCTURE OPEN FINANCE GROUP Segment: Asset and funds management Segment: Real estate intermediation Segment: Investment products BREAKDOWN OF SALES REVENUE IN Q % 2% 22% % SALES REVENUE Segment: Mortgages and cash loans - 2% % 100% % % 18% 7% 17% 100% 100% % -49% % 37% 8% 13% 10% 5% 3% 6% % PLN'000 1Q Q 2016 Page 8

10 INITIATIVES CONCERNING COSTS AND EXPENSES REDUCTION IN OPEN FINANCE GROUP In 2014 and 2015 Open Finance and Home Broker undertook a number of actions aimed at reducing operating costs. Results of actions taken are presented in the table below (consolidated data): Operating costs Q Q change change PLN '000 PLN '000 % REMUNERATION AND SOCIAL BENEFITS Salaries (879) -5% Comissions for external financial advisors % Other employee benefits % % Amortisation and depreciation % 6 100% % 7% Costs of fund management (in OF TFI) (1 518) -44% 43% 38% 6% OTHER OPERATING COSTS 3% 5% Lease and rental (1 094) -14% 10% Marketing, representation and adverstising (6) 0% Telecomunications 13% and postal services (360) -37% Materials and energy % Repair 8% and maintanance services, IT services and security (132) -11% Insurance, advisory 5% and legal services (211) -34% Taxes and charges (163) -30% Other costs % (1 650) -11% Page 9

11 CHAIN OF SALES IN OPEN FINANCE GROUP Number of branches 31 March Dec 2015 change% Open Finance % Open Direct % Open Finance (with real estate agent) 12 0 n/d Home Broker (with financial advisor Open Finance) % Home Broker (with financial advisor Open Direct) % Open Direct (with real estate agent) 11 0 n/d Total % Number of advisors 31 March Dec 2015 change% Open Finance % Open Direct % Open Partners % Home Broker % Total % stationary branches Open Finance (25) mobile branches Open Direct (83) branches Open Finance (with Home Broker real estate agent) (12) branches Home Broker (with financial advisor Open Finance) (18) branches Home Broker (with financial advisor Open Direct) (2) branches Open Direct (with Home Broker real estate agent ) (11) Page 10

12 2 000 MORTGAGES SALES VOLUMES OPEN FINANCE GROUP QUARTERLY VOLUMES OF MORTGAGES SOLD 14% -4% Mortgages OF Mortgages HB* MLN PLN Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q * mortgages launched in January 2016 by HB Finance Sp. z o. o. advisors.. The value of sold mortgages in Q amounted to PLN million and is higher than Q by 14%. Page 11

13 CASH LOANS SALES VOLUMES - OPEN FINANCE GROUP Structure of sales of cash loans by banks in Q % Quarterly volumes of cash loans sold 232 4% % 12% 241 Getin Noble Bank Other banks MLN PLN Q Q Q Q Q Q Q Q Q % increase in the volume cash loans sold in Q compared to Q and a 12% increase compared to Q Page 12

14 SALES OF REGULAR PREMIUM UNIT-LINKED POLICIES OPEN FINANCE GROUP INSURANCE AND REGULAR PREMIUM UNIT - LINKED POLICIES - quarterly volumes of sales % PLN '000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q The decrease in the volume of insurance and regular savings products sold in the first quarter of 2016 by 70 % compared to the first quarter of Page 13

15 SALES VOLUMES OF OTHER INVESTMENT PRODUCTS OPEN FINANCE GROUP VOLUMES OF STRUCTURED PRODUCTS SOLD VOLUMES OF DEPOSITS SOLD Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 mpln mpln The volume of sales of PLN 63 mln of structured products comprise high-margin structured investments, units in investment funds (TFI), low-margin investment policies, as well as UFK based on corporate bonds. Page 14

16 OPEN FINANCE GROUP RALATING TO THE MARKET VALUE OF MORTGAGES PAID (PLN '000) MORTGAGES Q1 '15 Q2 '15 Q3 '15 Q4'15 TOTAL Open Finance + Home Broker Expander Aspiro Notus Doradcy Finansowi Gold Finance Doradcy TOTAL: Source: Association of Financial Advisors CASH LOANS Q1 '15 Q2 '15 Q3 '15 Q4'15 TOTAL Open Finance + Home Broker Expander Aspiro Gold Finance Notus Doradcy Finansowi % 16 17% 56 Doradcy % TOTAL: % Source: 43% Association of Financial Advisors 3% 5% INVESTMENT PRODUCTS Q1 '15 10% Q2 '15 Q3 '15 Q4'15 TOTAL Open Finance + Home Broker Expander 13% Gold Finance 1,7 0,6 0,5 0 3 TOTAL 8% Source: Association 38% of Financial Advisors 5% CORPORATE LOANS Q3 '15 Q4'15 TOTAL Expander Open Finance + Home Broker Aspiro Gold Finance TOTAL: Source: Association of Financial Advisors % Q1 '15 Q2 '15 Q3 '15 Q4'15 VALUE OF CASH LOANS PAID (PLN '000) 100% Q1 '15 Q2 '15 Q3 '15 Q4'15 VALUE OF INVESTMENT PRODUCTS PAID (PLN '000) 0 Q1 '15 Q2 '15 Q3 '15 Q4'15 Open Finance + Home Broker Expander Gold Finance Open Finance + Home Broker Expander Aspiro Notus Doradcy Finansowi Gold Finance Doradcy24 Open Finance + Home Broker Expander Aspiro Gold Finance Notus Doradcy Finansowi Doradcy24 Strona 15

17 SALES VOLUMES IN REAL ESTATE OPEN FINANCE Value of real estate (PLN mln) GROUP Value of real estate and number of transactions on the primary market 44% Number of transactions (units) 0% Primary market in Q the number of transactions increased by 44% as compared to Q At the same time, the average value of property sold increased in Q by 13% as compared to Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Value of real estate and number of transactions on the secondary market % Value of real estate (PLN mln) Number of transactions (units) % Secondary market in Q1 2016, both the number of transactions as well as the average value of property sold remained at a comparable level to Q The decrease on secondary market in Q vs. Q4 resulted from changes in ending MDM program Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Page 16

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19 OPEN FINANCE TFI Open Finance TFI SA obtained the FSA approval for management of funds on 9 October 2012 and began operations. Investment Funds under management: Open Finance Open-End Investment Fund with 6 subfunds; 5 Closed Investment Funds (absolute return, shares, resources); 3 Closed Investment Fund corporate bonds; 3 securitization fund; 1 private equity investment fund. ASSETS UNDER MANAGEMENT Including PLN mln in capital market funds MLN PLN Page 18

20 OPEN FINANCE TFI Financial results for Q PLN 4.96 mln. The largest increase in assets concerns corporate bonds. (data in PLN thousand ) Assets as at % share Open Finance Open-End Investment Fund with 6 sub-funds % Absolute return closed-end funds % Corporate bonds closed-end funds % Capital market funds - total % Securitization funds % Private equity investment funds % Total assets % Page 19

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22 Objectives for 2016: 1. expansion of the network's own insurance advisors; 2. start of mobile network of life insurance advisors; OPEN BROKERS IN STRUCTURE OF OPEN FINANCE GROUP 3. development of external distribution network - activation acquired in 2015 partners; 4. further development of applications for agents with new crm modules; 5. launch of insurance comparison website; 6. increase in revenue from life insurance in connection with the implementation of savings and pension products; 7. further expansion of the portfolio of property insurance policies with an increased rate of commission in connection with the renegotiation of contracts; 8. earning additional turnover commission in 2016 in connection with the renegotiation of contracts; 9. keeping overhead costs on a level reduced in the last quarter of Cooperating Partners: Tow arzystw o Ubezpieczeń i Reasekuracji Allianz Polska S.A. AXA Życie Tow arzystw o Ubezpieczeń S.A. Metlife Tow arzystw o Ubezpieczeń na Życie S.A. Link 4 Tow arzystw o Ubezpieczeń S.A. Sopockie Tow arzystw o Ubezpieczeń Ergo Hestia S.A. Allianz Tow arzystw o Ubezpieczeń S.A. Benefia Tow arzystw o Ubezpieczeń S.A. Vienna Insurance Group Generali Tow arzystw o Ubezpieczeń S.A. Nationale Nederlanden Tow arzystw o Ubezpieczeń na Życie S.A. Tow arzystw o Ubezpieczeń INTER Polska Spółka Akcyjna Uniqa Tow arzystw o Ubezpieczeń Spółka Akcyjna Tow arzystw o Ubezpieczeń i Reasekuracji Warta S.A. Interrisk Tow arzystw o Ubezpieczeń Spółka Akcyjna Vienna Insurance Group Pow szechny Zakład Ubezpieczeń Spółka Akcyjna Open Life Tow arzystw o Ubezpieczeń Życie Spółka Akcyjna DATA AT THE END OF Q Net profit for Q Share capital PLN 347 thousand PLN 100 thousand Page 21

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24 OPEN LIFE AS PART OF OPEN FINANCE CAPITAL GROUP Structure of active policies at the end of 1Q ,7% 19,4% 12,7% Structured - regular Structured - single UL - regular UL - single 26,4% 34,6% Endowment Life insurance Assets under control in mln PLN ,3% mar jun sep dec mar jun sep dec mar Page 23

25 OPEN LIFE AS PART OF OPEN FINANCE CAPITAL GROUP Market share in terms of gross written premium of top 10 insurance companies at the end of 2015 PKO 4% AXA; 5% Other 19% PZU 29% GENERALI 5% NN 5% ERGO HESTIA 6% WARTA 6% OPEN LIFE 6% METLIFE 7% AVIVA 8% Source: KNF (Polish Financial Supervision Authority) Source: KNF (Polish Financial Supervision Authority) Page 24

26 OPEN FINANCE Q GROUP RESULTS sssssssssssssssssssssssssssssssssssssssssss sssssssssssssssssssssssssssssssssssssssssss ssss

27 CONSOLIDATED ASSETS OPEN FINANCE GROUP PLN ' Change value % ASSETS Fixed assets (5 098) -1% Tangible and intangible fixed assets (1 351) 0% Investment in associates % Investment property % Deferred tax asset (5 847) -20% Other long term receivables (848) -52% Other non-financial long term assets (9) -1% Current assets (11 050) -10% Trade receivables (732) -2% Corporate income tax receivables % Prepayments and accrued revenue, including accrued commission revenue (74) 0% Cash and cash equivalents (10 583) -50% Other % TOTAL ASSETS (16 148) -3% LIABILITIES AND EQUITY Equity attributable to shareholders of the parent % Share capital % Other reserve capital % Retained earnings % Equity of non-controlling shareholders (2 033) -41% Total equity (436) 0% Liabilities (15 712) -7% Deferred tax provision (6 815) -42% Provisions % Credit, loans and financial lease liabilities (1 160) -8% Issued bonds (2 962) -2% Trade liabilities % Accruals and deferred revenue, including accrued remuneration (8 345) -24% Corporate income tax payable % Other non-financial liabilities % TOTAL LIABILITIES AND EQUITY (16 148) -3% Page 26

28 CONSOLIDATED PROFIT AND LOSS OPEN FINANCE GROUP PLN '000 Sales revenue Change value % (1 867) -2% Costs of sales (46 770) (42 907) (3 863) 9% Profit on sales (5 730) -13% Administrative costs (29 363) (30 321) 958-3% Result on other operating activity (360) (157) (203) 129% Share in associates' profit (1 363) -32% EBITDA (6 338) -35% Depreciation and amortisation (7 291) (6 941) (350) 5% Result on financial activity (1 767) (1 740) (27) 2% Gross profit (6 715) -72% Income tax (219) (1 526) -117% Net profit (5 189) -65% including: - attributable to shareholders of the parent (4 933) -76% - attributable to non-controlling shareholders (256) -18% Page 27

29 DISCLAIMER This presentation has been prepared for information purposes only to be used by Open Finance S.A. s customers and shareholders and by market analysts, and may not be considered as an offer or recommendation to execute any transactions. The information contained in this presentation is based on publicly available, reliable sources. However, Open Finance S.A. cannot guarantee that this information is complete. Open Finance S.A. takes no responsibility for the consequences of any decisions based on any information contained in this presentation. The information contained in this presentation has never been subject to independent verification and may at any time be subject to change or modification. The publication by Open Finance S.A. of the figures contained in this presentation is not a breach of the regulations applicable to companies whose shares are traded on a regulated market. The information provided in this presentation has already been disclosed in current or periodic reports submitted by Open Finance S.A. or constitutes an addition to those reports, and its publication does not require the Company to fulfill the obligation to provide information as imposed on the Company as a public company. The content of this presentation may not, in any case, be interpreted as an express or implied statement of assurance made by the company or its representatives. In addition, neither the company nor its representatives may be held liable, in any way (as a result of negligence or for any other reason) for any loss or damage that might arise in connection with use of this presentation or any content of this presentation or that might arise in any other way in connection with the information contained in this presentation. In the event of a change to the company s strategy or intentions or in the event of unexpected facts or circumstances affecting the company s strategy or intentions, the company is not responsible for informing the public of any possible modifications or changes to any information, data or statements provided in this presentation. Please note that the only reliable source of information on the situation of Open Finance S.A., events, financial results and indicators is the current and periodic reports submitted by Open Finance S.A. as part of its obligation to provide information. Page 28

30 Thank you for attention