Presentation is loading. Please wait.

Presentation is loading. Please wait.

Distinctive. Choice. Preliminary Results for the year ended 31 st December 2010.

Similar presentations


Presentation on theme: "Distinctive. Choice. Preliminary Results for the year ended 31 st December 2010."— Presentation transcript:

1 Distinctive. Choice. Preliminary Results for the year ended 31 st December 2010

2 2010 Preliminary Results Another strong financial performance –Continued strong organic growth –Growing contribution from high-growth economies –Business Transformation Programme delivering financial and operational benefits –Investments in leading industry professionals, acquisitions and systems –Improving trading margins across the businesses –Increased dividend

3 2010 Financial Highlights * Total revenue comprises fees and commissions and investment income * *Underlying results exclude exceptional and non-recurring items CRE is constant rates of exchange Organic growth is on fees and commissions excluding the impact of acquisitions, disposals and the impact of currency Growth (£m) ActualCREOrganic Total revenue* %14%7% Underlying trading profit** %9% Trading margin17.4%16.7% Underlying PBT** % Reported PBT % Underlying EPS (diluted)**40.5p33.8p20% Reported EPS (diluted)41.7p33.1p26% Dividend per share22.5p21.0p7%

4 Retail %11%10% %24%21% London Market %5%6% %19%19% Risk & Insurance %8%8% %21%20% Employee Benefits %46%4% %17%16% Thistle Insurance Services %11%6% %13%10% Central Costs ----(27.0)(27.0)(13.5) %14%7% %16%17% (£m) 2010GrowthCREOrganic2010CRE CRE2009 Total RevenueTrading ProfitTrading Margin Total Revenue & Trading Profit Track record of strong organic growth continues

5 Australasia %2%2% %28%26% Asia64.326%21%20% %22%21% Latin America41.144%30%25% %29%21% Canada30.322%11%11% %17%10% Europe21.71%3%6% %16%15% Insurance Management4.9(1%)(2%)(2%) %6%8% %11%10% %24%21% (£m) Total RevenueTrading ProfitTrading Margin Retail Growing contribution from high-growth economies 2010GrowthCREOrganic2010CRE CRE2009

6 JLT Specialty %5%6% %19%20% Lloyd & Partners61.912%4%4% %21%20% JLT Re73.114%7%8% %16%18% %5%6% %19%19% (£m) London Market Continuing to invest for growth Total RevenueTrading ProfitTrading Margin

7 (£m) JLT Specialty Expanding specialty capabilities 2010GrowthCREOrganic2010CRE CRE2009 JLT Specialty %5%6% %19%20% Lloyd & Partners61.912%4%4% %21%20% JLT Re73.114%7%8% %16%18% %5%6% %19%19% Total RevenueTrading ProfitTrading Margin

8 (£m) Lloyd & Partners Organic growth in a challenging market 2010GrowthCREOrganic2010CRE CRE2009 JLT Specialty %5%6% %19%20% Lloyd & Partners61.912%4%4% %21%20% JLT Re73.114%7%8% %16%18% %5%6% %19%19% Total RevenueTrading ProfitTrading Margin

9 (£m) JLT Re Strong organic growth in non-marine division 2010GrowthCREOrganic2010CRE CRE2009 JLT Specialty %5%6% %19%20% Lloyd & Partners61.912%4%4% %21%20% JLT Re73.114%7%8% %16%18% %5%6% %19%19% Total RevenueTrading ProfitTrading Margin

10 Total Revenue UK Employee Benefits %4% %16% Trading Profit Trading Margin 2010 GrowthOrganic (£m) UK Employee Benefits Acquisitions delivering growth

11 UK Thistle Insurance Services37.711%6% %10% Trading ProfitTrading MarginTotal Revenue Total Thistle MGU*MGA** Facilities 2010 Gross Written Premium (£m) Thistle Insurance Services Encouraging progress 2010 Growth Organic * Managing General Underwriter * *Managing General Agency

12 Distinctive. Choice. Simon Mawson Group Finance Director Financial Review for the year ended 31 st December 2010

13 Revenue Operating Costs(616.4)(515.7)(100.7) Underlying trading profit Associates after tax3.73.8(0.1) Net underlying finance costs(3.5)(2.6)(0.9) Underlying PBT Net exceptional (costs)/gains(10.7)(2.8)(7.9) PBT Underlying tax expense(37.7)(30.0)(7.7) Non-recurring tax credit Non-controlling interest(4.2)(2.4)(1.8) PAT (after non-controlling interest) Underlying PAT (after non-controlling interest) Diluted EPS 41.7p33.1p8.6p Underlying diluted EPS40.5p33.8p6.7p Final dividend per share22.5p21.0p1.5p Change Profit & Loss (£m)

14 Average market rates Hedging rates achieved as at 28 February 2011 $1.55$1.51$1.53$1.53 $1.54 % Revenue hedged90%84%77%70%10% Market forward rates as at 28 February 2011$1.62$1.61$1.60$1.59 Actual achieved rates after hedging $1.55$1.53$1.55$1.55$1.58 Value of $260m revenue in £m£168m£170m£168m£168m£165m Approx YOY revenue impact in £m£16m£2m(£2m)-(£3m) USD Revenue Protection Full Year Projections Forward rates Actual

15 Fees and commissions %613100%128 Operating costs: Staff costs % %68 Premises 405.4%355.7%5 Depreciation & amortisation 172.3%132.1%4 Travel & entertainment273.6%233.8%4 Other operating costs %7812.7% % % Increase Underlying Operating Cost Ratio (£m)

16 Net exceptional costs: Business Transformation Programme costs7.3 Integration of acquisitions 5.5 Other exceptional and non-recurring items(2.1) 10.7 Exceptional and non-recurring tax credits: Tax settlements 10.3 Tax saving on net exceptional and non-recurring costs Exceptional and Non-Recurring Items (£m)

17 Incremental One-off costs (7)(7)(4)(1) Associated benefits3832 Cumulative: One-off costs(7)(14)(18)(19) Recurring benefit H Actual 2010 Actual 2011 Fcast 2012 Fcast 30th June th June 2012 Business Transformation Programme (£m)

18 Goodwill and intangibles Fixed assets Associates and investments Net working capital and other49742 Hedging contracts after deferred tax (4)8(12) Net pension deficit after deferred tax(56)(67)11 Other deferred net tax assets1697 Net debt (76)(42)(34) Net assets Change Balance Sheet (£m)

19 Successful completion of debt facilities refinancing comprising: $125m (£81m) private placement of unsecured loan notes at c.230 bps over LIBOR £270m – 5 year revolving credit facilities with relationship banks at 150 bps over LIBOR Expected cost of borrowing to increase by £2.5m in Refinancing Programme Providing a strong platform for growth

20 EBITDA Deduct:Net interest associates & other(6)(6) Tax paid(26)(22) Net working capital increase(44)(18) Normal capex(32)(22) Net shares acquired (5)(4) Pension deficit funding(4)(12) Acquisitions / Disposals(27)(26) Dividends paid(48)(46) Foreign exchange1(5) Movement in net debt(34)(33) Underlying EBITDA Deduct: exceptional items paid(11)(6) Cash flow on an operational basis (£m)

21 Distinctive. Choice. Dominic Burke Group Chief Executive

22 Revenue 3 Year Compound Annual Growth Rate of 15% £m

23 Underlying Trading Profit £m Year Compound Annual Growth Rate of 18%

24 Contribution from investment income £m % 17.2% 6.2% 4.3% Underlying Trading Profit Excluding investment income 3 Year Compound Annual Growth Rate of 26% Improving quality of earnings

25 Pence +9.2% % +11.2% +19.8% 26.0p 30.4p 33.8p 40.5p Underlying Diluted EPS 3 Year Compound Annual Growth Rate of 16%

26 Continued Strong Headwinds Soft rating environment Continued low interest rates Poor consumer and business confidence Rising unemployment Governments austerity measures Brokers and Insurers competing for market share

27 Five Pillars Driving JLTs Success Providing a distinctive working environment

28 Operating as One Firm, to the benefit of clients Five Pillars Driving JLTs Success

29 Providing a distinctive working environment Operating as One Firm, to the benefit of clients Focusing and growing in specialist areas Five Pillars Driving JLTs Success

30 Providing a distinctive working environment Operating as One Firm, to the benefit of clients Focusing and growing in specialist areas Building a significant international business especially in the worlds high-growth economies Five Pillars Driving JLTs Success

31 Providing a distinctive working environment Operating as One Firm, to the benefit of clients Focusing and growing in specialist areas Building a significant international business, especially in the worlds high-growth economies Improving the efficiencies and effectiveness of our people, systems and processes Five Pillars Driving JLTs Success

32 The macro-economic conditions remain very challenging and the rating environment soft… …however, could the market finally be approaching an inflexion point? Market Update

33 Our clear focus on clients, coupled with the benefits of the investments we are making in leading industry professionals, systems and acquisitions, provides us with confidence that we will continue to make financial progress in 2011, building on the strong momentum developed in Outlook


Download ppt "Distinctive. Choice. Preliminary Results for the year ended 31 st December 2010."

Similar presentations


Ads by Google