W&W Group continues positive trend in the third quarter W&W - - PowerPoint PPT Presentation

W&W Group continues positive trend in the third quarter

W&W Group 9M/19 Wüstenrot & Württembergische AG

Agenda

2

W&W share

4

Strategy

3

Financials

1

Snapshot

5

Outlook

Page 2

Wüstenrot & Württembergische-Group Creating values, securing values We provide people with the experience of financial planning from a single source.

Key elements of the W&W- business model:

• Long-term strategy
• Risk-averse
• Focus on growth

We focus our efforts in four fields

• f action:
• Financial security
• Real estate ownership
• Risk protection
• Private asset formation

Our W&W Group mission

Snapshot

Page 3

Focused strategy on investor satisfaction

Snapshot

We offer an attractive and stable €0,65 dividend, which translates into a dividend yield of 4% Our diversified business portfolio focuses on customers’ needs We further improve our market position Omni-channel market access and high brand awareness are

• ur strengths

Our commitment: We aim at twice the market growth We seize the opportunities presented by digitalisation We enhance our strategic

• ptions by acquisitions

We pursue a sustainable approach to business

1 + 1 = 3

Page 4

* Business unit Life

Strong brands

Housing Property & Casualty Insurance Life & Health Insurance

Value creating segments

brandpool # 2 in Bausparen 13.8% market share

Strong market position 2018

# 12 in life insurance 2.1% life market share* # 9 in P/C 2.5% market share New digital approaches

Strong market performance guarantees value creation

Snapshot

Page 5

~ 3000

Wüstenrot sales agents

~ 3000

Württembergische sales agents

Brokers > 10.000

Broker, independent sales agents and pools

W&W sales force Partnerships and cooperations Direct sales

Excellent sales mix offers high cross selling potential to W&W Group.

Strong sales force to capture further growth

Snapshot

wuestenrot.de wuerttembergische.de

Page 6

Agenda

2

W&W share

4

Strategy

3

Financials

1

Snapshot

5

Outlook

Page 7

• Analysts see a clear upside potential and

recommend the stock as a buy.

• 31/12/2018:
• Equity per share: 45.51 €
• Earnings per share: 2.29 €

Analysts' estimates Commerzbank 06/11/19 buy / targetprice: 23.00 € Lampe 15/11/19 buy / targetprice: 26.00 € Metzler 15/11/19 buy / targetprice: 23.50 € Montega 15/11/19 buy / targetprice: 23.00 € LBBW 14/11/19 buy / targetprice: 23.00 €

Current valuation offers attractive entry level. Price level with significant upside potential

W&W share

70% 80% 90% 100% 110% 120% 130%

W&W-Share

W&W-Share DAXsector Insurance DAX DAXsector Banks

Page 8

*Wüstenrot Holding AG and WS Holding AG are wholly-owned by Wüstenrot Stiftung, i.e. the indirect shareholding of the latter amounts to 66.31%

Wüstenrot Stiftung as anchor investor

Wüstenrot Stiftung as non-profit foundation is interested in long-term stability and appreciates regular dividend payments.

W&W registered shares are listed on the Stuttgart and Frankfurt stock

• exchange. W&W AG fulfills prime standard is part of the SDAX since

March 2016.

Dividend policy: Reliable dividend at least at previous year‘s level

W&W share

10,0% WS Holding AG* Horus Free float 23,7% Wüstenrot Holding AG* 26,4% 39,9% 2.52 2.81% 2014 0.50 0.60 2015 3.01% 2.88 2018 2.29 2.74 0.65 0.65 2.78% 2016 3.23% 0.60 2.49 2017 4.06% Dividend yield Earnings per share Dividend per share

Page 9

Agenda

2

W&W share

4

Strategy

3

Financials

1

Snapshot

5

Outlook

Page 10

Successful new business

Financials 9M/2019

+4% +13% +6% +9%

Bausparen (gross) Construction Financing Property & Casualty Insurance Life & Health Insurance

Page 11

2 4 High measurement gains from fixed-income securities in net financial income 3 1 After tax profit increased by 28% New business developed positively in all respects 5 Mid-term guidance of €220mn to 250mn reiterated 6 Pay out of €0.65 for FY2018 translating into a dividend yield of 4.06% vs. MDAX of 2,75 and SDAX of 2.09% New digital brand Adam Riese shows a customer base of nearly 80,000

Positive business performance thanks to transformation and digitalisation

Financials 9M/2019

Page 12

Results 2014 – 9M/2019: Overview

Financials 9M/2019

Group Net Profit (IFRS)

in €mn

2014 2015 2016 2017 2018 9M/2018 9M/2019 Housing segment 51.8 57.0 58.7 58.5 59.1 45.5 32.6 Segment Life and Health Insurance 45.7 40.3 49.7 31.8 24.7 12.4 31.0 Segment Property/Casualty Insurance 128.2 114.9 108.3 125.8 131.4 106.8 124.0 Others/Consolidation 16.3 62.1 18.6 41.9 0.0 7.6 32.4 Group Net Profit 242.0 274.3 235.3 258.0 215.2 172.3 220.0

Earnings before income taxes 283.0 323.6 291.6 292.4 320.5 257.5 316.5 Income taxes

• 41.0
• 49.3
• 56.3
• 34.4
• 105.3
• 85.2
• 96.4

Page 13

Housing segment

in % 17.1 2018 24.1 2014 13.8 12.7 2015 15.3 15.6 14.1 30.06.2019 18.4 19.4 2016 18.9 2017 25.7 24.1 in € mn in € mn 2017 5,517 4,839 2018

+14%

2017 13,766 13,569

+1%

2018 337.9 2018 2017 360.0

• 6%

in € mn Financial holding group Wüstenrot Bausparkasse AG 4,061 4,672

+15%

9M 2018 9M 2019 9,679

+4%

9M 2019 9M 2018 10,068 241.9 251.7 9M 2018

• 4%

9M 2019

Financials 9M/2019

Gross new business Construction finance Core capital ratio Administrative expenses

Page 14

Housing segment: acquisition of Aachener Bausparkasse

The Acquisition of Aachener Bausparkasse in 2019 grants Wüstenrot new exclusive distribution partnerships with 8 insurance companies. Wüstenrot Bausparkasse is THE cooperation Bausparkasse in Germany with a huge network of exclusive distribution partnerships.

&



Potential access to more than 55 million customers.

Financials 9M/2019

Page 15

Life & Health Insurance segment

Administrative expenses Return on new investments (WL)

in % in € mn in € mn 828 880

+2%

2018 2017 3,395 2,515 3,319 2,491 2017 2.4 2.6 2018 263.3 2018

+1%

260.9 2017 in € mn 446 2018 301 2,201 2,201 2,502

+11%

9M 2019 2,046 2,046 155 1,600 2017 Appropr. Opening

Additional interest reserve

company pension schemes private pensions schemes

SII-Ratio

in %, as of Sep 2019 140 124 186 245 SII Group WL with Trans w/o Trans

+3%

9M 2019 198.4 9M 2018 192.8

+10%

9M 2018 2,626 2,377 9M 2019

Financials 9M/2019

Total premiums for new life insurance business

Page 16

Life & Health Insurance segment

in %

Yield on capital investments vs. actuarial interest rate

0,5 1 1,5 2 2,5 3 3,5 4 2014 2015 2016 2017 2018

• Avg. balance-sheet actuarial interest rate (with ZZR)
• Avg. current yield on new capital investments
• Avg. current yield on capital investments (Local GAAP)
• Our average current yield on capital investments (local

GAAP) is above the average balance-sheet actuarial interest rate (with ZZR*).

• Since 2017 even our average current yield on new

capital investments is above the average balance-sheet actuarial interest rate (with ZZR*).

• This means that Württembergische Lebensversicherung

has a strong financial basis and was and still is able to finance its obligations.

Financials 9M/2019

*ZZR = Additional interest reserve Page 17

Gross loss ratio business year Combined ratio Gross natural disaster claims and Underwriting income (local GAAP) Gross premiums written

in EUR mn

1.848 1.751 1.678 1.636 1.579 1.200 1.300 1.400 1.500 1.600 1.700 1.800 1.900 2018 2017 2015 2016 2014 60 62 64 66 68 70 72 74 2016 2017 71.6 2018 73.9 72.7 72.1 69.9 2015 2014 70 75 80 85 90 95 100 90.1 91.9 2016 88.9 89.8 2014 95.5 92.1 90.7 2015 95.5 2018 89.5 88.1 2017

in € mn

200 150 100 50 135 152 2015 167 80 74 65 2016 2018 2017 89 105 2014 41 52

Property & Casualty Insurance segment

in %

Underwriting income Gross natural disaster claims Gross Net

in %

1.645 1.556 1.200 1.300 1.400 1.500 1.600 1.700 9M 2018 9M 2019 6% 60 62 64 66 68 70

• 0.4%

9M 2019 9M 2018 69.7 70.0 70 75 80 85 90 95 89.3 9M 2018 9M 2019 90.6 90.4 88.0 106 125 64 80 50 100 150 9M 2018 9M 2019

Financials 9M/2019

Page 18

Increased results: strong development

Financials 9M/2019

Consolidated net profit (IFRS), in €mn

• 100
• 50

50 100 150 200 250 300 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 236 “W&W 2009” Restructuring programme “W&W 2012” Expansion programme “W&W 2015” Programme to reinforce our strengths “W&W Besser!”

Annual figures Multi-year average

16 166 202 224

x14

strategic target

220 250

Page 19

Agenda

2

W&W share

4

Strategy

3

Financials

1

Snapshot

5

Outlook

Page 20

Long term top strategic goals

Strategy

Financial planning. Diversity. Solidarity.

At W&W Group, it is our mission to help our customers with financial planning. The solutions offered by our companies are as varied as the wishes of our customers. Inspiring 6 millionen customers

Increasing speed, efficiency and service quality Leading core businesses into the future Opening up new customer and market segments

through unconditional customer orientation through bold further development through innovative digital business models through an efficient infrastructure

Page 21

W&W Besser!

(Strategy implementation)

Digital transformation in all segments Delighting customers and boosting sales force! Developing new business models! Increasing efficiency and service quality! Expanding profitable growth fields! Inspiring employees! Laying the IT foundation! Meeting regulatory requirements!

Focusing business portfolio Developing a platform

• n housing

Attracting high potentials Emphasising

• n commercial

customers Digitali- sation Launching a new digital brand Entering into new cooperations Improving customer experience Reducing administrative expenses

Clear objective: W&W as a winner of the upheaval in the financial industry.

Strategy implementation bundled in “W&W Besser!” – Heading for the digital future

Strategy

page 22

Brandpool: new digital products and services

Strategy

Adam Riese NIST treefin FinanzGuide Keleya

• The digital insurance brand
• f W&W
• Offering expanded to personal

liability, legal protection, home contents, dog owner liability, and business liability insurance

• Over 80,000 customers, over

49,000 new contracts in 2019

• The digital companion for

buying real estate

• First business model tests

successfully completed

• Customers can choose between
• ffers of over 400 partner banks
• The health coach for

expectant moms

• Application for Android and

iOS users

• Individual yoga- and

pilates-workouts, dietary plans and tips for general well-being

• The digital financial

assistant

• Launched in 2018 for

existing customers

• Over 30,000 registered

users

• Generates leads for the

sales force

• The independent insu-

rance broker

• Targets new and younger

customer groups

• Over 53,600 registrations;
• ver 11,300 new

registrations in 2019

Page 23

Exemplary strategic acivities

Strategy

W&W-Gruppe Campus

• New office buildings in

Ludwigsburg for a higher level of employer attractiveness

• First construction phase was

completed in time

• 1,200 new, modern workspaces

are in use

• Phase two is on-going

Württembergische SME businesses Wüstenrot Wohnwelt

• The offer is addressed to potential

real estate buyers and owners

• A real estate search engine is

included

• Third party offerings around living

are integrated

• The project “Partner des

Mittelstands” (partner of the mid- sized sector) bundels strategic and

• perational initiatives regarding

SME clients

• First initiatives show promising

results

Page 24

Agenda

2

W&W share

4

Strategy

3

Financials

1

Snapshot

5

Outlook

Page 25

Growth

• New business expected to rise in all core business segments.

Investments

• We expect continuing high investments in future development and digitalisation.
• We expect to close the acquisition of Aachener Bausparkasse in first half year of 2020.

IFRS

• We still expect consolidated net profit at the end of the year to come in at the upper end of the long-

term target range of € 220 to 250 million.

Local GAAP

• Net profits under local GAAP (HGB) expected to rise from € 80mn (2018) to approx. € 90mn.

Dividend

• Stable and reliable dividend policy: at least equal to previous year’s level (2018: € 0.65 / share).

W&W Group to deliver on its targets for 2019

Outlook

Page 26

Thank you for your kind attention!

English website available: www.ww-ag.com Report German + English IR Newsletter Fact Sheet German + English

For further information please contact: Michael Ellwanger Head of Investor Relations ir@ww-ag.com +49 711 662 725252 www.ww-ag.com

Page 27

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 forward-looking 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

• r 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.

Disclaimer

Page 28

High-level expertise of W&W Group in financial issues

1828 Württembergische

Privat-Feuer- Versicherungsgesellschaft was established, the oldest private property insurance in southern Germany

1833 Allgemeine

Rentenanstalt, the first pension insurance in Germany was established

1921 Wüstenrot

(Gemeinschaft der Freunde) was founded, Germany’s first home loan and savings bank

1991 Württembergische

Feuerversicherung and Allgemeine Rentenanstalt merged into Württembergische Versicherung AG

1999 Merger of

Wüstenrot und Württembergische

2001

Acquisition of Leonberger Bausparkasse AG

2005

Acquisition of Karlsruher Versicherungs- gruppe

2009 Acquisition

• f Vereinsbank

Victoria Bauspar AG

2010 Acquisition

• f Allianz

Dresdner Bauspar AG

2017 Participation

in treefin GmbH; creating “W&W FinanzGuide-App”

2017 Introducing

new digital brand ”Adam Riese”

2018 online

platform Wüstenrot Wohnwelt started

2019 Acquisition

• f Aachener

Bausparkasse AG

Appendix

Page 29

Jürgen A. Junker, CEO W&W AG

Chairman of the Management Board and W&W Executive Board

Jürgen Steffan, CRO W&W AG

Member of the W&W Executive Board

Jens Wieland, COO/CIO W&W AG

Member of the W&W Executive Board

Bernd Hertweck,

Head of Wüstenrot Division Chief Executive Officer of Bausparkasse AG

Thomas Bischof

Head of Württembergische Division and Chief Executive Officer of Württembergische Versicherungen

• Dr. Michael Gutjahr, CFO

W&W AG

Member of the W&W Executive Board

Daniel Welzer

Head of Brandpool Division and Chairman of W&W brandpool Board

W&W Management Board

Appendix

Page 30

30/03/2020 W&W Annual Report 2019 15/05/2020 3M Quarterly Statement 19/05/2020 Annual General Meeting 14/08/2020 6M Quarterly Statement 13/11/2020 9M Quarterly Statement Further information: www.ww-ag.de/calendar

Financial calendar

Appendix

Page 31