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1
DISCLAIMER
Certain statements in this presentation are forward-looking. Although the Group believes that the expectations
reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations
will prove to have been correct. Because these statements involve risks and uncertainties, actual results may
differ materially from those expressed or implied by these forward-looking statements.
The Group undertakes no obligation to update any forward-looking statements whether as a result of new
information, future events or otherwise.
2018 INTERIM HIGHLIGHTS
A ROBUST TRADING PERFORMANCE
2
2018 INTERIM FINANCIAL RESULTS
6 Growth
3
REVENUE AND TRADING PROFIT BY BUSINESS
£m 2018 2017 Growth CRE Organic 2018 CRE 2017 2018 CRE 2017
Employee Benefits 152.4 152.0 0% 4% 4% 18.6 20.7 21.7 12% 13% 14%
Highlights
Strong and consistent organic revenue growth across our businesses
Negative FX movement, primarily translational, reduced headline growth by 300 bps
4
SPECIALTY
GOOD PROGRESS UNDER NEW MANAGEMENT STRUCTURE
6 Growth
5
REINSURANCE
A LEADING GLOBAL REINSURANCE BROKER
6 Growth
6
EMPLOYEE BENEFITS
SIGNIFICANT ORGANIC REVENUE GROWTH IN INTERNATIONAL BUSINESSES
6 Growth
7
CHARLES ROZES
GROUP FINANCE DIRECTOR
8
2017-2018: UNDERLYING PBT
(£m)
0.3
1.0
▲7.8 2.8
111.6
108.8
+12%
99.2
+10%
2017 Specialty Reinsurance Employee Head Office Associates Net Interest 2018 CRE FX 2018
Benefits
2017 restated for IFRS 15.
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CASH FLOW (OPERATIONAL BASIS)
6 MONTHS TO 30 JUNE*
£m 2018 2017 2016 2015 2014
EBITDA 145** 147 115 128 138
Net interest (6) (6) (8) (8) (7)
Working capital (82) (82) (68) (54) (98)
Annual capex (24) (32) (17) (34) (32)
Operational free cash flow 33 27 22 32 1
Dividends paid (48) (45) (42) (39) (37)
Tax paid (21) (17) (18) (16) (18)
Net shares acquired (19) (15) (8) (17) (15)
Other (1) (2) (18) (9) (7)
Net cash inflow / (outflow) excl acq / disp (56) (52) (64) (49) (76)
Acquisitions / disposals (29) (40) (4) 67 (12)
Net cash (outflow) / inflow (85) (92) (68) 18 (88)
10
NET DEBT AND LEVERAGE
6 MONTHS TO 30 JUNE
£m 2018 2017 2016 2015 2014
Net debt excl. non-cash items (591) (588) (508) (456) (433)
Net debt / EBITDA ratio (bank covenant basis) 1.9x 1.8x 2.0x 2.0x 2.0x
Note: 2017 EBITDA restated for IFRS 15, prior years not restated.
11
EXCEPTIONAL ITEMS
£m 2018 2017
Others - 0.1
(19.4) (0.9)
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GLOBAL TRANSFORMATION PROGRAMME
GENERATING SUSTAINABLE ANNUALISED SAVING OF £40M BY 2020
2018 33 16 16
2019 12 19 35
2020 - 5 40
*Treated as exceptional items.
13
DOMINIC BURKE
GROUP CEO
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GLOBALLY COORDINATED
INCREASING WORLDWIDE BUSINESS OPPORTUNITIES
New structure attracting the best talent to broaden our global Specialty capabilities
15
DEVELOPING TECHNOLOGY
ENHANCING OUR CLIENT PROPOSITION AND DELIVERY
Employee Globally working towards a single digital platform providing employees with integrated
Benefits access to a full suite of benefits
Delivering and generating benefits for our clients and for the Group
16
OUTLOOK STATEMENT
17
QUESTIONS
18
SUPPLEMENTARY SLIDES
FOR SIX MONTHS ENDED 30 JUNE 2018
CONTENTS
3 ASSOCIATES
4 BALANCE SHEET
5 EBITDA CALCULATION
6 NET DEBT
1
TOTAL REVENUE GROWTH COMPONENTS
Reinsurance 6% - - 6% (2%) 4%
Total 4% 2% - 6% (3%) 3%
2
ASSOCIATES
3
BALANCE SHEET
AS AT 30 JUNE
£m 2018 2017* Change
Fixed assets 67 66 1
4
EBITDA CALCULATION
6 MONTHS TO JUNE 30
£m 2018 2017*
Add-back:
5
NET DEBT
AS AT 30 JUNE
£m 2018 2017*
Cash and investments:
Cash and cash equivalents 1,043.4 965.8
Cash deposits:
Current 138.4 124.1
Non-current 11.5 6.0
1,193.3 1,095.9
Less: fiduciary cash (insurance payables) (1,020.6) (913.8)
Own funds 172.7 182.1
Borrowings:
Committed borrowings (742.6) (729.8)
Uncommitted/other borrowings (23.1) (17.4)
(765.7) (747.2)
Net debt (593.0) (565.1)
*2017 restated for IFRS 15, prior years not restated.
6
CURRENCY IMPACT ON UNDERLYING PBT
6 MONTHS TO JUNE 30
£m 2018 2017*
A) Transactional impact:
2.7 2.5
In 2017 the Group earned some 350 million US dollars of revenues from operations which have a sterling cost base. The achieved
blended rate for 2017 was 1.45.
Based on current hedging levels in 2018, it would take a movement of around 10 cents in the spot rate to generate a 1 cent movement in
the achieved blended rate. As a guide, each one cent movement in our achieved rate translates into a change of approximately
£2.1 million in revenue, with an impact on trading profit equal to approximately 70% of that.
At the 17th July 2018, some 91% of anticipated US dollar earnings for 2018 are hedged at an average rate of 1.38, for 2019 some 75% is
hedged at an average of 1.34, for 2020 75% hedged at 1.35, for 2021 45% hedged at 1.43 and for 2022 10% hedged at 1.41.