OPEN FINANCE 2015 GROUP RESULTS. Presentation of financial results for investors and analysts

Transcription

1 OPEN FINANCE 2015 GROUP RESULTS Presentation of financial results for investors and analysts Warsaw, March 17, 2016

2 BASIC FINANCIAL INFORMATION - OPEN FINANCE GROUP CHANGE DATA AT THE END OF 4TH QUARTER % * Branches (166) + 6% * Equity (392,5 mln zł)***** + 14% ** Net profit (28,9 mln zł)***** + 9,1% ** Revenue (370,9 mln zł) + 4% ** EBITDA (75,9 mln zł) *** +0,5 p.p. ** ROE (7,8%) **** The comparative figures restated due to change in accounting policy, note VIII 5 to the consolidated report for the period of 12 months of * compared to data as at 31 December 2014 ** compared to data for 2014 *** EBITDA - earnings before interest, tax, depreciation and amortisation **** ROE - return on equity calculated as relation of 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 OUR MISSION We are building the Financial Group an unquestioned leader in its category Households are our main target Clients; our ambition is to deliver our services to as many households as possible We aim to deliver dedicated and tailored product offer: a) intermediation in respect of mortgages (financing of real estate and consumer loans) Open Finance b) advisory and intermediation in respect of investment products Open Finance I. savings and investment products II. protective life insurance III. property insurance including car insurance c) life insurance products Open Life d) advisory and intermediation in respect of sale of real estate Home Broker e) own, dedicated investment funds Open Finance TFI 100% 76,25% 49% 49% * share as at 16 March On 27 January 2016, there was a merger of HB Finanse sp. z o.o. with Open Finance S.A. Page 2

4 CHANGES KEY ACTIVITIES WITHIN THE GROUP IN 2015 The spin-off of the company HB Finanse sp. z o.o from Home Broker S.A. for the purpose of its merger 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, which will increase the effectiveness of both of the distribution companies. The merger was effected on 27 January 2016; Further development of external sales structure Open Partners within Open Finance as a market integrator of small financial advisory businesses, based on a "success fee" from sales; Creating external sales structure HB Partners within the Home Broker as a market integrator of real estate brokerage dedicated to support the primary market, based on a "success fee" from sales; In connection with the development of external sales channels, the gradual reorientation of customer acquisition from outside the Internet; Development of insurance multiagency in the structure of the Group; attracting current and new clients by wide insurance offer; Further development of the corporate loans segment; Serving developers with securing financing and outsourcing of sales departments; Development of financial intermediation market in small cities using the mobile network expansion. Page 3

5 OPEN FINANCE GROUP RECEIVED AWARDS 1. Konsumencki Lider Jakości I 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. Created in Poland Superbrands 2015/16 in the category of financial advisors 6. The most valuable Polish Brand 2015 in the category of Finance - 7th place in the ranking of Rzeczpospolita 7. First place in the ranking of Gazeta Finansowa - companies from the advisory industry. Page 4

6 CONSOLIDATED NET PROFIT OPEN FINANCE GROUP (attributable to shareholders of the parent) 14% PLN '000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 57% Net profit for 2015 amounted to PLN thousand and is higher compared to the net profit for 2014 by PLN thousand, ie. 14%. Page 5

7 PLN'000 CONTRIBUTION OF EACH COMPANY TO CONSOLIDATED REVENUE OF OPEN FINANCE GROUP COMPANIES' CONTRIBUTION TO THE CONSOLIDATED REVENUE IN (7 106) % OF HB HB Finanse OF TFI cons adjustments Consolidated revenue Consolidation adjustments to revenue in 2015 concern the elimination of transactions within the Group. Page 6

8 PLN'000 Mortgages Cash loans Real estate intermediation Asset and funds management Structured products Regular premium unit-linked policies Insurance Deposits Other Bank accounts Total sales revenue REVENUE STRUCTURE OPEN FINANCE GROUP Segment: Asset and funds management Segment: Other BREAKDOWN OF SALES REVENUE IN 2015 SALES REVENUE Segment: Real estate intermediation Segment: Investment products % % % % 3% 7% % % 141%% 1% 17% 100% % 100% Segment: Mortgages and cash loans 9% % % % % % 33% % 10% 5% 3% 6% % % 0 PLN'000 4Q 2014 * 4Q 2015 * Revenue for the period 2014 was restated due to the change in accounting policy described in note VIII 5 to the report for the period of 12 months of Page 7

9 INITIATIVES CONCERNING COSTS 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 * change change PLN '000 PLN '000 % REMUNERATION AND SOCIAL BENEFITS Salaries (33 674) -31% Comissions for external financial advisors % Other employee benefits (105) -4% % 43% 38% 17% 100% 7% Amortisation and depreciation (3 400) -11% Costs of fund management (in OF TFI) 12 6% % 5% 3% OTHER OPERATING COSTS 10% Lease and rental (12 410) -31% Marketing, representation 13% and adverstising (1 677) -21% Telecomunications and postal services (1 053) -25% 8% Materials and energy (1 873) -21% Repair and maintanance services, IT services and 5% security (1 082) -18% Insurance, advisory and legal services % Taxes and charges % Other costs (1 407) -24% (19 190) -25% * Costs for 2014 were restated due to the change in accounting policy described in note VIII 5 to the report for the period of 12 months of Page 8

10 CHAIN OF SALES IN OPEN FINANCE GROUP stationary branches Open Finance Home Broker branches mobile branches Open Direct Number of advisors 31 Dec Dec 2014 change% OF financial advisors % Open Partners advisors % HB financial advisors % HB real estate agents % Number of branches 31 Dec Dec 2014 change% Open Finance % Home Broker % Merged branches % Total % Total % (*) - employment as at exact date Page 9

11 MORTGAGES SALES VOLUMES OPEN FINANCE GROUP QUARTERLY VOLUMES OF MORTGAGES SOLD 6% Mortgages OF Mortgages HB MLN PLN Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q The value of sold mortgages in Q amounted to PLN million and is the highest of the last eight quarters. Page 10

12 CASH LOANS SALES VOLUMES - OPEN FINANCE GROUP Structure of sales of cash loans by banks in % 60% Quarterly volumes of cash loans sold % Getin Noble Bank Other banks Q Q Q Q Q Q Q Q MLN PLN 76% increase in the volume of cash loans sold in 2015 as compared to Page 11

13 SALES OF INSURANCE PRODUCTS AND 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 Q Increase by 21% in the volume of insurance and regular premium unit-linked policies sold in Q as compared to Q Page 12

14 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 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 mpln mpln Collected deposits constitute an excellent base for cross-sell of structured products; The volume of sales of PLN 76 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 13

15 OPEN FINANCE GROUP RALATING TO THE MARKET MORTGAGES Q1 '15 Q2 '15 Q3 '15 TOTAL Open Finance + Home Broker Expander Aspiro Notus Doradcy Finansowi Gold Finance Doradcy TOTAL: Source: Związek Firm Doradztwa Finansowego CASH LOANS Q1 '15 Q2 '15 Q3 '15 TOTAL Open Finance + Home Broker Expander Aspiro Gold Finance Notus Doradcy Finansowi % Doradcy TOTAL: % 43% 3% Source: Związek Firm Doradztwa Finansowego 5% 10% INVESTMENT PRODUCTS Q1 '15 Q2 '15 Q3 '15 TOTAL Open Finance + Home Broker 13% Expander Gold Finance 8% TOTAL 38% % Source: Związek Firm Doradztwa Finansowego 17% 17% VALUE OF MORTGAGES PAID (PLN '000) Q1 '15 Q2 '15 Q3 '15 VALUE OF CASH LOANS PAID (PLN '000) % % Q1 '15 Q2 '15 Q3 '15 VALUE OF INVESTMENT PRODUCTS PAID (PLN '000) Open Finance + Home Broker Expander Aspiro Notus Doradcy Finansowi Gold Finance Doradcy24 Open Finance + Home Broker Expander Aspiro Gold Finance Notus Doradcy Finansowi Doradcy24 CORPORATE LOANS Q3 '15 TOTAL Expander Open Finance + Home Broker Aspiro Gold Finance TOTAL: Open Finance + Home Broker Expander Gold Finance Source: Związek Firm Doradztwa Finansowego 0 Q1 '15 Q2 '15 Q3 '15 Strona 14

16 SALES VOLUMES IN REAL ESTATE OPEN FINANCE GROUP Value of real estate and number of transactions on the primary market Value of real estate (PLN mln) Number of transactions (units) Total value : PLN mln Total number : units Total value : PLN mln Total number : units 34% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Value of real estate and number of transactions on the secondary market Total value: PLN mln Total number : units Total value : PLN mln Total number : units Value of real estate (PLN mln) Number of transactions (units) 1% Primary market in Q there was an increase in the number of transactions as compared to the previous quarters due to increased numer of developers in the offer. At the same time, the average value of property sold remained at a comparable level in Q as compared to Q Secondary market in Q4 2015, the number of transactions as well as the average value of property sold remained at a comparable level to Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Page 15

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18 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 17

19 OPEN FINANCE TFI Financial results for 2015 PLN mln. The largest increase in assets concerns corporate bonds and securitization funds. (data in PLN thousand ) Assets as at % share Open Finance Open-End Investment Fund with 6 sub-funds % Absolute return, equity, commodity closed-end funds % Corporate bonds closed-end funds % Capital market funds - total % Securitization funds % Private equity investment funds % Total assets % Page 18

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21 OPEN BROKERS IN STRUCTURE OF OPEN FINANCE GROUP Objectives for 2016: 1. expansion of the network's own insurance advisors; 2. development of external distribution network activation of partners aquired in 2015; 3. further development of application for agents with new crm modules; 4. launch of insurance comparison website; 5. increase in revenue from life insurance in connection with the implementation of savings and pension products; 6. further expansion of the portfolio of property insurance policies with an increased rate of commission in connection with the renegotiation of contracts; 7. earning additional turnover commission in 2016 in connection with the renegotiation of contracts; 8. keeping overhead costs on a level reduced in the last quarter of Cooperating Partners: Towarzystwo Ubezpieczeń i Reasekuracji Allianz Polska S.A. AXA Życie Towarzystwo Ubezpieczeń S.A. Metlife Towarzystwo Ubezpieczeń na Życie S.A. Link 4 Towarzystwo Ubezpieczeń S.A. Sopockie Towarzystwo Ubezpieczeń Ergo Hestia S.A. Allianz Towarzystwo Ubezpieczeń S.A. Benefia Towarzystwo Ubezpieczeń S.A. Vienna Insurance Group Generali Towarzystwo Ubezpieczeń S.A. Nationale Nederlanden Towarzystwo Ubezpieczeń na Życie S.A. Towarzystwo Ubezpieczeń INTER Polska Spółka Akcyjna Uniqa Towarzystwo Ubezpieczeń Spółka Akcyjna Towarzystwo Ubezpieczeń i Reasekuracji Warta S.A. Interrisk Towarzystwo Ubezpieczeń Spółka Akcyjna Vienna Insurance Group Powszechny Zakład Ubezpieczeń Spółka Akcyjna Open Life Towarzystwo Ubezpieczeń Życie Spółka Akcyjna DATA AT THE END OF 2015 Revenue for 2015 Net profit for 2015 Share capital PLN thousand PLN 294 thousand PLN 100 thousand Page 20

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23 OPEN LIFE AS PART OF OPEN FINANCE CAPITAL GROUP Financial data 2015 IFRS net financial result in m PLN 33.9 GWP structure in ,3% 3,9% ROE 20.3% No. of active policies in thousands Technical reserves coverage ratio 110.0% Solvency margin coverage ratio 147.0% Unit Linked Products Protection Products Endowment Assets under control in m PLN 95,8% TOP 5 unit-linked funds in terms of assets (m PLN) Unit-linked funds Amount 1 UFK OL Corporate Bonds UFK OL Corporate Bonds UFK OL Debt Bonds II UFK OL Debt Bonds III dec mar jun sep dec mar jun sep dec Bonds Central and Eastern Europe Strona 22

24 OPEN LIFE AS PART OF OPEN FINANCE CAPITAL GROUP Gross Written Premium in m PLN Company 3Q Q 2015 Change 1 PZU % Market share in terms of gross written premium of top 10 insurance companies at the end of 3Q AVIVA % 3 METLIFE % 4 OPEN LIFE % 5 WARTA % 6 ERGO HESTIA % PKO 4% Other 18% PZU 29% 7 NN % 8 GENERALI % AXA 5% 9 AXA % 10 PKO % OTHER % TOTAL MARKET % GENERALI 5% NN 5% ERGO HESTIA 6% WARTA 6% OPEN LIFE 7% METLIFE 7% AVIVA 8% Source: KNF (Polish Financial Supervision Authority) Source: KNF (Polish Financial Supervision Authority) Strona 23

25 OPEN FINANCE 2015 GROUP RESULTS

26 CONSOLIDATED ASSETS OPEN FINANCE GROUP PLN ' ASSETS (restated) Change value % Fixed assets % Tangible and intangible fixed assets % Investment in associates % Investment property % Deferred tax asset % Other long term receivables (1 331) -45% Other non-financial long term assets % Current assets (15 619) -12% Trade receivables % Corporate income tax receivables % Prepayments and accrued revenue, including accrued commission revenue (1 109) -3% Cash and cash equivalents % Other (20 616) -73% TOTAL ASSETS % LIABILITIES AND EQUITY Equity attributable to shareholders of the parent % Share capital % Other reserve capital (6 160) -2% Retained earnings % Equity of non-controlling shareholders (465) -9% Total equity % Liabilities (16 107) -6% Deferred tax provision % Provisions (25) -38% Credit, loans and financial lease liabilities % Issued bonds (14 309) -10% Trade liabilities % Accruals and deferred revenue, including accrued remuneration (12 108) -26% Corporate income tax payable % Other non-financial liabilities % TOTAL LIABILITIES AND EQUITY % Page 25

27 CONSOLIDATED PROFIT AND LOSS OPEN FINANCE GROUP PLN '000 Sales revenue (restated) Change value % % Costs of sales ( ) ( ) (49 680) 34% Profit on sales (18 650) -10% Administrative costs ( ) ( ) % Result on other operating activity (2 166) (6 461) % Result of loss of control in subsidiary (25 936) n.d. Share in associates' profit % EBITDA % Depreciation and amortisation (28 003) (31 403) % Result on financial activity (8 095) (8 635) 540-6% Gross profit % Income tax % Net profit % including: - attrib utab le to shareholders of the parent % - attrib utab le to non-controlling shareholders % Page 26

28 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 25

29 Thank you for attention