Goldman Sachs European Financials Conference. Growth Opportunity in Ireland. David Went, Chief Executive Irish Life & Permanent plc

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1 Goldman Sachs European Financials Conference Growth Opportunity in Ireland David Went, Chief Executive Irish Life & Permanent plc Barcelona June 2006

2 Agenda Drivers of Growth Target markets Irish Life Strategy & Delivery Growth Today Growth Tomorrow 2 Goldman Sachs European Financials Conference

3 Wealth Creation 120, ,000 Figures in 000s 80,000 60,000 Average GDP Growth 7.4% p.a. 40,000 20, Source: ESRI 3 Goldman Sachs European Financials Conference

4 Employment Growth 2,000 1,800 Figures in 000s 1,600 1,400 35% Increase in Employment 1,200 1, Source: ESRI 4 Goldman Sachs European Financials Conference

5 Baby Boomers Come of Age Age ,000 in year cohort , , , , , , ,000 5 Goldman Sachs European Financials Conference Source: ESRI

6 Inward Migration Inflow 60 Figures in 000s Outflow Goldman Sachs European Financials Conference Source: NCB

7 Public Policy Support Policy support for long and short term savings Extensive tax incentives for pensions Low taxation on investments Sensible regulatory environment 7 Goldman Sachs European Financials Conference

8 Market Opportunities Drivers Financial Needs Demand Baby Boom/ Migration + Mortgages = Life Protection / Savings Employment Growth + Rising incomes / bonuses = Investments / Pensions SME success + Wealth management = Pensions Asset appreciation + Inherited wealth = Investments 8 Goldman Sachs European Financials Conference

9 Irish Life Products Distribution Market Packaged Investment Products Savings Brokers Individuals Pensions Bonds Sales Force Co.Directors Protection Products Mortgage Bancassurance Self-employed Family Employees 9 Goldman Sachs European Financials Conference

10 Irish Life Market Share Retail Market Share 22.6% in 2005 Share winners/losers over last 5 years Irish Life +6.5% Bank of Ireland +4.4% Ark Life -7.4% Hibernian -4.4% 10 Goldman Sachs European Financials Conference

11 Why? Distribution Technology Brand Reach Depth Point of Sale After sales service Customer Proposition Investment story 11 Goldman Sachs European Financials Conference

12 Distribution Reach & Depth Direct Sales Brokers Bancassurance Onesource Institutions Productivity Segmentation Buy in Selling Direct Selling ptsb & Process from Bank Sales process process 12 Goldman Sachs European Financials Conference

13 Technology Investment CRM Electronic Sales Process Engaging customer experience Every activity measured Fully integrated with Call Centre epos Online application and underwriting High quality service experience Trebling new business processing productivity Back Office Integrated customer centric Back Office system Enable launch of self service facilities Doubling existing business productivity 13 Goldman Sachs European Financials Conference

14 Brand -Treating Customers Fairly Product Transparency Only financial company in Ireland or UK to have Plain Englished full product range. Needs-based advice Award winning Siebal point of sale advice process 94% of customers say they would recommend Customer Satisfaction Focus on doing best what matters most to customers Customer Satisfaction Index increased +2.6% to 79.1% in 2005 Staff profit share payout linked to improvements in customer satisfaction 14 Goldman Sachs European Financials Conference

15 Brand - Investment Competence ILIM - Moneymate Awards Fidelity Bloxham Property 15 Goldman Sachs European Financials Conference

16 Brand - Promoting Consensus 16 Goldman Sachs European Financials Conference

17 Strategy Distribution + Technology + Brand Market Share Gains + Growth in Value of New Business 17 Goldman Sachs European Financials Conference

18 Growth Today 2005 Sales +33% Market Share +1.4% Life VNB +72% 18 Goldman Sachs European Financials Conference

19 Growth Tomorrow Active Population: Ireland v EU 320,000 4, ,000 Ireland (rhs) 3,600 Figuers in 000s 280, , ,000 EU-25 3,200 2, ,000 2, , ,000 Economy has potential to grow at between 4 5% a year until Goldman Sachs European Financials Conference Source: ESRI

20 Growth Tomorrow Mortgages External Retail Results New Distribution Pensions Irish Life Best Placed SSIAs 20 Goldman Sachs European Financials Conference

21 Demographics drive mortgages Housing Supply & Demand Over 25 Completions (rhs) 21 Goldman Sachs European Financials Conference Source: NCB

22 Adding Retail Distribution New institutional partner with 102 branches / agencies 22 Goldman Sachs European Financials Conference

23 New Wealth boosts pensions Spending by Income Decile Pension Fund Domestic Services Hotels & Expenditure Abroad Private Health Insurance Meals Away from Home Clothing & Footwear Entertainment Mortgage Repayments & Home Insurance Personal Services Food Rent & Other Charges 0 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th Fuel & Light Tobacco Source: NCB 23 Goldman Sachs European Financials Conference

24 SSIA opportunity 24 Goldman Sachs European Financials Conference

25 Contact Information Please contact our Investor Relations Department for any further information or visit our group website at Contact details: Barry Walsh Orla Brannigan orla.brannigan@irishlife.ie Goldman Sachs European Financials Conference

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