W&W AG share shows considerable upside potential

Transcription

1 W&W AG share shows considerable upside potential Michael Ellwanger Head of Investor Relations 6. Süddeutsche Kapitalmarktkonferenz Süddeutsche Aktienbank, Stuttgart 26 March 2015

2 Agenda 1: W&W at a glance: Positive track record since : W&W AG An attractive investment 3: Preliminary results : Strategy W&W@2020 / Future trends W&W AG, Investor Relations page 2

3 1. W&W at a glance: Positive track record since 2006 Our roots: Foundations of strong expertise Established in 1828, Württembergische Privat- Feuer-Versicherungsgesellschaft is the oldest private property insurance in southern Germany. In 1833, Allgemeine Rentenanstalt, the first pension insurance in Germany, was established. In 1991, both companies formed the Württembergische Insurance Group. Founded 1921, Wüstenrot was Germany s first home loan and savings bank. In 1999, merger of Wüstenrot & Württembergische: Mobile sales force of about 6,000 tied agents 7,200 employees in Germany 6 m customers No 2 in German home loan savings No 11 in German casualty/property insurance No 13 in German life insurance W&W AG, Investor Relations page 3

4 1. W&W at a glance: Positive track record since 2006 Shareholder structure of W&W AG Wüstenrot Stiftung 100 % Wüstenrot Holding % Registered non-profit foundation, which exclusively pursues charitable and non-profit-making purposes Between 50 and 60 honorary members from the worlds of culture and economics, as well as public and social affairs Funding of various projects of other non-profit-organisations About 40 own projects each year in the fields of Protection and restoration of historical buildings Arts and culture Science and Research Education Funding of various projects of other non-profit-organisations W&W AG 7.56 % % % Unicredit Horus Freefloat Freefloat raised by almost 5 % in 2015 Wüstenrot Stiftung as major shareholder ensures independence and high stability of the W&W Group. W&W AG, Investor Relations page 4

5 1. W&W at a glance: Positive track record since 2006 Our strong pillars: Reliable partners for all stakeholders With its strong pillars, W&W Group s business model is well diversified to face challenging market conditions W&W AG, Investor Relations page 5

6 1. W&W at a glance: Positive track record since 2006 Focus on multi-channel distribution Own sales channels ~ 3,000 tied agents Württembergische ~ 3,000 tied agents Wüstenrot Direct channel 1 Partnerships and cooperations Banks Banks Insurance companies Financial sales networks Insurance companies Brokers 8,000 brokers Cooperations Financial sales networks Potential access to 40 m customers in Germany Cooperations 1) Direct sales, supporting the mobile sales force through mailshots, call centres, online transactions W&W AG, Investor Relations page 6

7 1. W&W at a glance: Positive track record since 2006 Our vision: Sustainability and independence The world is changing, at an ever-increasing pace. Given the complexity of today's world, many customers are looking for a reliable, long-term partner to satisfy their needs in terms of financial services. Our position in the market is unique: With the two well established strong brands "Wüstenrot" and "Württembergische", the W&W Group is a specialized one-stop shop for financial planning of retail clients and small/medium commercial customers in Germany and the Czech Republic. These strong brands guarantee diversification and synergies for the whole group. Personal services delivered locally by our mobile sales force of 6,000 well-educated agents ensure a customer relationship which is characterized by trust, understanding and reliability. We offer solutions for each customers' individual needs, throughout all stages in life, in the areas of retail banking with focus on banking products and mortgage lending, life and health insurance as well as property and casualty insurance. We deliver clear and systematically defined quality standards. Continuous quality management forms an integral part of our corporate culture. Basis of our value based management and control system are performance indicators in the fields of customer satisfaction, cost efficiency, profitability and regulatory requirements. W&W AG, Investor Relations page 7

8 1. W&W at a glance: Positive track record since 2006 Since 2006, W&W net income has increased by more than ten-fold Net income IFRS, in m W&W 2009 Restructuring programme W&W 2012 Expansion programme W&W 2015 Programme to reinforce our strengths Group annual net income Average group net income All targets achieved despite global financial market crisis W&W AG, Investor Relations page 8

9 1. W&W at a glance: Positive track record since 2006 W&W achieved its targets Programme "W&W 2009" successfully completed Programme "W&W 2012" successfully completed Effects of * "W&W 2015" Costs: m Income: m before tax Net income IFRS, in m Net income IFRS (actual figures) Net income IFRS (target figures) All targets achieved: Total effect after tax and RfB is 150 m (aim was m by end 2015) * prior to tax and provisions for premium refunds (RfB) W&W AG, Investor Relations page 9

11 2. W&W AG An attractive investment W&W share shows stable long-term performance Share price attractive to buyers (23.3.) Net asset value as of 12/31/14: Dividend policy: (2013): 0.50 We want to at least maintain our dividend W&W is a stable and reliable group with upside potential W&W AG, Investor Relations page 11

12 2. W&W AG An attractive investment Order book turnover of W&W share Quelle: Deutsche Börse Higher free float leads to continuos increase in order book turnover W&W AG, Investor Relations page 12

13 2. W&W AG An attractive investment W&W share offers attractive shareholder value Dividend yield 3.50 % 3.23 % 2.89 % 2.81 % 2.63 % 4,00% 3,50% 3,00% 2,50% 2,00% 1,50% 1,00% 0,50% 0,00% W&W dividend 0,50 0,50 0,50 0,50 0,50 W&W is aware of the increasing importance of the dividend to its shareholders In the light of the persistent low interest rate environment W&W s dividend yield is very attactive to investors. In order to preserve dividend continuity, we want to at least maintain our dividend on the previous years level Dividend yield based on share price at year-end. Average interest rate for savings deposits with a statutory notice period Source: Deutsche Bundesbank W&W s dividend yield is considerably up on comparable interest rates for savings deposits W&W AG, Investor Relations page 13

14 2. W&W AG An attractive investment Intensified Investor Relations activities Improved service for shareholders, analysts, institutional and private investors Intensified roadshow activities and capital market conferences in terms of actively addressing investors Further increase in free float and liquidity of W&W shares seems possible Increased resources in the IR department Improved IR Hotline Service Relaunch Corporate IR-Website in 2015 Source: ww-ag.com / Investor Relations / Finanzkalender W&W AG, Investor Relations page 14

16 3. Preliminary results 2014 Preliminary figures 2014 and Outlook Net income W&W Group (IFRS) In 2014, W&W achieved 242m (vs 194.9m in 2013) net income, significantly exceeding the forecast of 180m due to a better loss ratio in P/C and lower costs thanks to our strategy programme W&W Business performance was characterized by consistent cost management under the W&W 2015 strategy programme, less insurance damages covered and a strong investment result. Net income W&W AG (HGB) Division BausparBank Insurance Division The HGB net income is the key reference value for the payment of dividends to our shareholders. In 2014, net income of W&W AG reached 56m (vs. 71.6m) which is above planned 50m. We want to at least maintain our dividend ( 0.50 in 2014). Despite a slight decrease, net new Bauspar business of 11.5 (vs 12.8) bn is once again above market level Satisfactory result in home loans of 3.9 bn (vs 4.6) bn, given the conscious decision to discontinue low-margin activities Total gross premiums of insurance divisions exceed 4bn for the first time P/C increased by 4 percent Despite the difficult market environment we achieved slight increase in life and health business Outlook Depending on the further development of interest rates we aim to reach a total net income between 220m and 250m in the medium turn Highest net income ever for W&W Group in 2014 Detailed final results will be published by 31 March 2015 W&W AG, Investor Relations page 16

18 4. Strategy / Future trends W&W faces multiple challenges Low interest rates Changes in distribution structure/omni-channel Price stability Digitisation Climate change and environmental protection Ecology Society Technology Policy Increasing regulation Demography Efficiency of the Government Changing customer needs and changes in values Reputation Data security and consumer protection and is addressing these issues with vigour W&W AG, Investor Relations page 18

19 4. Strategy / Future trends Strategic answers to market challenges Specialist in home loan savings and financing of modernisation measures Strong mobile sales force Aim: to be best in Bausparen Bausparen Attractive product range Life Alternative guarantees/low risk products Known for best services Transparent and standardised products Banking Property/ Casualty Maintain profitability Aim: Digital-Bank for private customers Further digitisation Own sales force is major sales channel We aim at strengthening our economic and financial situation as well als our prospects for the future. W&W AG, Investor Relations page 19

20 Thank you for your kind attention! For further information please contact: Michael Ellwanger Head of Investor Relations internet: ww-ag.com, phone: W&W AG, Investor Relations page 20

21 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. W&W AG, Investor Relations page 21