goldman sachs european financials conference...
TRANSCRIPT
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Goldman Sachs European Financials Conference
Growth Opportunity in Ireland
David Went, Chief ExecutiveIrish Life & Permanent plc
Barcelona June 2006
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Agenda
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Drivers of Growth
Target markets
Irish Life – Strategy & Delivery
Growth Today
Growth Tomorrow
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Wealth Creation
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20,000
40,000
60,000
80,000
100,000
120,000
1997 1998 1999 2000 2001 2002 2003 2004 2005
Fig
ures
in 0
00s
Source: ESRI
Average GDP Growth 7.4% p.a.
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Employment Growth
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1,000
1,200
1,400
1,600
1,800
2,000
1997 1998 1999 2000 2001 2002 2003 2004 2005
Fig
ures
in 0
00s
Source: ESRI
35% Increase in Employment
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Baby Boomers Come of Age
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0 50,000 100,000 150,000 200,000 250,000 300,000 350,000
0-4
10-14
20-24
30-34
40-44
50-54
60-64
70-74
80-84
90-94
Ag
e
Source: ESRI
900,000 in 20-34 year
cohort
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Inward Migration
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0
10
20
30
40
50
60
70
80
1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Fig
ures
in 0
00s
Source: NCB
Inflow
Outflow
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Public Policy Support
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Policy support for long and short term savings
Extensive tax incentives for pensions
Low taxation on investments
Sensible regulatory environment
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Market Opportunities
8
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
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Irish Life
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Products Distribution Market
Packaged Investment Products • Savings • Brokers • Individuals• Pensions• Bonds • Sales Force • Co.Directors
Protection Products • Mortgage • Bancassurance • Self-employed• Family
• Employees
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Irish Life Market Share
10
Retail Market Share 22.6% in 2005
Irish Life +6.5%
Bank of Ireland +4.4%
Ark Life -7.4%
Hibernian -4.4%
Share winners/losers over last 5 years
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Why?
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Distribution
Reach
Depth
Technology
Point of Sale
After sales service
Brand
Customer Proposition
Investment story
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Distribution Reach & Depth
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Productivity Segmentation Buy in Selling Direct Selling ptsb& Process from Bank Sales process process
Direct Sales Brokers Bancassurance Onesource Institutions
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Technology Investment
13
• Electronic Sales Process• Engaging customer experience• Every activity measured• Fully integrated with Call Centre
• Online application and underwriting• High quality service experience• Trebling new business processing productivity
• Integrated customer centric Back Office system• Enable launch of self service facilities• Doubling existing business productivity
CR
MeP
OS
Bac
kO
ffic
e
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Brand -Treating Customers Fairly
14
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
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Brand - Investment Competence
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ILIM - Moneymate Awards
Fidelity
Bloxham
Property
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Brand - Promoting Consensus
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Strategy
17
Market Share Gains
+
Growth in Value of New Business
Distribution
+Technology
+Brand
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Growth Today
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2005
Sales +33%
Market Share +1.4%
Life VNB +72%
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Growth Tomorrow
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200,000
220,000
240,000
260,000
280,000
300,000
320,000
2005 2010 2015 2020 2025 2030
Fig
uer
s in
000
s
2,000
2,400
2,800
3,200
3,600
4,000
Source: ESRI
Ireland (rhs)
EU-25
Active Population: Ireland v EU
“Economy has potential to grow at between 4–5% a year until 2010.”
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Growth Tomorrow
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External Retail Results
Mortgages
New Distribution
Pensions
SSIAs
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Irish Life Best Placed
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Demographics drive mortgages
0
20
40
60
80
100
1971 1976 1981 1986 1991 1996 2001 2006 2011 20160
20
40
60
80
100
Housing Supply & Demand
Over 25 Completions (rhs)
Source: NCB
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Adding Retail Distribution
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Newinstitutionalpartner with
102 branches / agencies
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New Wealth boosts pensions
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0
50
100
150
200
250
300
350
400
450
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
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
Fuel & Light
Tobacco
Spending by Income Decile
Source: NCB
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SSIA opportunity
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Please contact our Investor Relations Department for any further
information or visit our group website at www.irishlifepermanent.ie
Contact details:
Barry Walsh [email protected] +353 1 704 2678
Orla Brannigan [email protected] +353 1 704 1345
Contact Information
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