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Goldman Sachs European Financials Conference Growth Opportunity in Ireland David Went, Chief Executive Irish Life & Permanent plc Barcelona June 2006

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  • Goldman Sachs European Financials Conference

    Growth Opportunity in Ireland

    David Went, Chief ExecutiveIrish Life & Permanent plc

    Barcelona June 2006

  • Agenda

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    Drivers of Growth

    Target markets

    Irish Life – Strategy & Delivery

    Growth Today

    Growth Tomorrow

    •j•j•j

    •j•j

  • 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.

  • 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

  • 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

  • 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

  • Public Policy Support

    7 Goldman Sachs European Financials Conference

    •j

    •j

    •j

    Policy support for long and short term savings

    Extensive tax incentives for pensions

    Low taxation on investments

    Sensible regulatory environment

    •j

  • 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

    •j

    •j

    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

    •j

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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

    12

    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

    15

    •j

    •j

    •j

    ILIM - Moneymate Awards

    Fidelity

    Bloxham

    Property

    •j

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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

    18

    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.”

  • Growth Tomorrow

    20

    External Retail Results

    Mortgages

    New Distribution

    Pensions

    SSIAs

    •j•j•j

    •j

    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

  • New Wealth boosts pensions

    23

    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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