Delivering on our Strategy

September 2014

Disclaimer

This presentation does not constitute an invitation to subscribe for or otherwise to acquire or dispose of shares in Hansard Global plc. This presentation may contain forward-looking statements with respect to certain of the plans and current goals and expectations relating to the future financial conditions, business performance and results of Hansard Global plc. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the control of Hansard Global plc, including amongst other things, Hansard Global’s future profitability, competition with the markets in which the Company operates and its ability to retain existing intermediary clients and win new intermediary clients, changes in economic conditions generally or in the life assurance, savings and investment products sectors, terrorist and geopolitical events, changes in legal and regulatory regimes and practice, the ability of its owned and licensed technology to continue to service developing demands, changes in taxation regimes, exchange rate fluctuations, and volatility in the Company’s share price. As a result, Hansard Global’s actual future financial condition, business performance and results may differ materially from the plans, goals and expectations expressed or implied in these forward-looking statements. Hansard Global undertakes no obligation to publicly update or revise forward-looking statements, except as may be required by applicable law and regulation (including the Listing Rules). No statement in this presentation is intended to be a profit forecast

or be relied upon as a guide to future performance. In particular, past performance is no guide to future performance.

Introduction & Overview

Results – FY 2014

Our Business Strategy

New Business Plans

Summary

Questions 3

Meet the team Introduction & Overview

Gordon Marr Chief Executive Officer

Vince Watkins Chief Financial Officer

Graham Morrall Global Sales & Marketing Director

4

Overview – FY 2014 Introduction & Overview Launch of new business strategies - April 2014

Strongly positive cash flows •

Operating cash surplus of £37.8m (2013: £41.4m)

HIL New Business of £83.0m (PVNBP) (2013: £172.1m) •

Suspension of distribution relationship in Japan

•

Reduced new business margins of 4.0% (2013: 12.0%) driven by low volumes

•

EEV operating loss of £6.6m (2013: 11.7m profit)

Settled long-outstanding litigation (£0.7m) (2013: £1.6m)

5

Overview – FY 2014 - continued Introduction & Overview

Underlying IFRS profit of £14.7m (2013: £12.4m) before CEC provision

Increased final dividend of 5.0p per share in line with guidance Revised Operating Model implemented successfully for Hansard Europe

Board composition refreshed

6

New Business – Japan distribution Introduction & Overview Japanese Distributor Distributor suspended writing new business in October 2013 – regulatory breach

New business introduced - £10m PVNBP in FY 2014 (2013: £74m) Value of in-force at 30 June 2014 - £13m (2013: £24m) HIL has suspended taking business from Japanese residents

FY 2015 Objectives Policyholder retention - lapses during FY 2014 in line with other business Regulatory clarification

7

Chargeable Event Certificates Introduction & Overview Maximum estimated liability – £5m •

Compensation to HMRC on “tax lost” basis based on last 6 tax years

•

Estimated liability includes costs

•

Settlement discussions under way – technical issues to resolve

•

Liability is fully provided for

Preventative action •

Independent comprehensive data review

•

Control Function Structure review underway

•

Overseen by Audit Committee

8

Hansard Europe Introduction & Overview

Revised Operating Model •

Administration transferred to IOM

•

Regulatory control and litigation management in Dublin

•

Cash generating and capital-efficient model

Capital •

Surplus capital at 30 June 2014 – £13.4m

•

Assumed restriction on dividend distributions for estimated 3 years

Litigation •

Settlements of £0.7m in year (c.30% in value of writs served)

•

Fund performance issues

•

Outstanding writs total net £5.2m - Belgium, Germany, Italy and Madoff

9

Introduction & Overview

Results – FY 2014

Our Business Strategy

New Business Plans

Summary

Questions 10

Results – Full Year 2014

11

Summary Results – FY 2014 Results – FY2014 FY 2014

FY 2013

New business sales – Regular premiums * New business sales – Single premiums * New business margin Operating cash surplus Underlying IFRS profit after tax IFRS profit after tax

£63.7m £19.3m 4.0% £37.8m £14.7m £8.3m

£151.0m £21.1m 12.0% £41.4m £12.4m £10.4m

EEV Operating (loss) / profit after tax

(£6.6m)

£11.7m

5.00p

4.75p

FY 2014 £204m £944m

FY 2013 £226m £1,028m

Final dividend per share

European Embedded Value Assets Under Administration

*New business sales for FY 2013 have been restated to reflect closure of Hansard Europe to new business from 30 June 2013

12

Profitable New Business Results – FY 2014

FY 2014

FY 2013*

£m

£m

Regular premiums

63.7

151.0

Single premiums

19.3

21.1

PVNBP

83.0

172.1

New Business Margin (PVNBP basis, after tax)

4.0%

12.0%

IRR of New Business sales in the year

6.7%

>15%

Present Value of New Business Premiums

Reductions in new business margin and IRR in FY 2014 reflect impact of reduced sales volumes

*PVNBP in FY 2013 has been restated to reflect the closure of Hansard Europe to new business

13

Positive Operating Cash Flows Results – FY 2014 50

FY 2014

FY 2013

£m

£m

37.8

41.4

20

1.0

1.6

10

38.8

43.0

0

(15.4)

(28.8)

Corporation tax (paid) / received

(0.2)

0.2

Capital expenditure

(1.4)

(0.6)

Net Cash inflow before dividends

21.8

13.8

(11.2)

(15.5)

10.6

(1.7)

Operating cash surplus Interest and other income Cash inflow

Operating cash surplus at year ended 30 June 37.8

£m

40 30

2010

Dividends paid Net Cash flow for the year

2011

2012

2013

2014

Shareholder cash at 30 June

£m

Investment in new business

90 80 70 60 50 40 30 20 10 0

78.5

2010

2011

2012

2013

2014

Cash flows support investment in profitable contracts and dividends

14

Abridged Income Statement - IFRS Results – FY 2014 FY 2014

FY 2013

£m

£m

55.2

52.8

0.2

2.2

55.4

55.0

Origination costs

(21.2)

(21.2)

Administrative expenses before settlements and discontinued activities

(19.5)

(21.1)

14.7

12.7

(6.4)

(2.0)

8.3

10.7

-

(0.3)

8.3

10.4

Fees and commissions Investment and other income Increased levels of fee income and reduced underlying expenses. CEC estimated liability of £5m, litigation settlements of £0.7m and Hansard Europe new business closure costs of £0.7m

CEC settlement, litigation settlements and discontinued activities Profit for the period before taxation Tax Profit for the period

15

Strong IFRS Balance Sheet Results – FY 2014

Other assets Shareholder cash and bank deposits Total assets

FY 2013 £m

140

123.9

131.0

100

7.3

7.8

78.5

67.2

209.7

206.0

123.9

120

£m

Deferred origination costs

Deferred Origination Costs at 30 June

FY 2014 £m

80 60 40 20 0 2010

Other payables Net assets

141.2

137.6

31.6

28.6

172.8

166.2

36.9

39.8

2012

2013

2014

Deferred Income at 30 June 145

141.2

140

£m

Deferred income

2011

135 130

125

Shareholders’ Equity

36.9

39.8

120 115 2010

2011

2012

2013

2014

Continued investment in profitable contracts – at lower margins

16

Resilient EEV Balance Sheet Results – FY 2014

EEV Balance Sheet as at 30 June

Value of Future Profits

150.4

FY 2013 £m 20.0 24.6 44.6 181.1

300

£m

Free surplus Required Capital Net Worth

FY 2014 £m 28.3 25.1 53.4

250 200 150

53.4

Net Worth

100

VIF 150.4

50

European Embedded Value

203.8

225.7

0 2010

2011

2012

2013

2014

Fast conversion of VIF to cash – 50% will convert within 5 years Deferral of dividends from Hansard Europe for estimated 3 years – Required Capital

17

EEV return impacted by new business shortfall Results – FY 2014

EEV return driven by new business profit and assumption changes. Experience variances include £5m for estimated CEC liability.

FY 2014 £m

FY 2013 £m

New business profit

3.3

22.5

Expected return

1.5

1.5

Experience variances

(6.7)

(5.5)

Assumption and other changes

(4.7)

(6.8)

EEV Operating loss after tax

(6.6)

11.7

Investment return variances

(8.2)

7.9

4.1

(2.6)

(10.7)

17.0

Economic assumption changes EEV loss after tax

18

Our Business Strategy

19

Strategic objective Our Business Strategy

To add significant scale to the business, on a more diversified basis, through organic growth at acceptable levels of risk & profitability

To be the preferred choice of distributors when recommending international savings and investment products to their clients

20

Strategic objectives Our Business Strategy

More long-term relationships with distributors

Excellent customer service

Motivated & engaged workforce

Better value For Customers

A more visible profile in the market

Market leading online systems

21

New Business Plans

22

More long-term relationships with distributors

Maintain and grow local distribution • Brazil • Russia

Grow new Distribution Channels

Regional Development Focus

• Expatriate IFA • Insurance Companies • HNW Banks

•Latin America •Asia •Middle East & Africa •Europe

Business Acceptance • Continue nonadmitted • Increase admitted capability

23

More long-term relationships with distributors New Business Plans

Rebuilding Distribution

Rebuilding Sales Team Regional Round Up – diversification and risk reduction

Marketing and Proposition focus in support of new business

24

More long-term relationships with distributors Our Business Strategy New business in 2013 (excluding Japan) was introduced by 71 active* brokers

In 2014 we have added 33 brand new Terms Of Business with networks – representing over 200 brokers to our available distribution

North Asia Europe

X 6 TOB

X 6 TOB

South East Asia

X 8 TOB Latin America

X 3 TOB

Middle East/Africa

X 10 TOB

*Active brokers means all brokers that produced more than £10k NICC

25

More long-term relationships with distributors Our Business Strategy

New team and new segmented distribution base

North Asia

• • • •

South East Asia

• Malaysia • Expatriate

Middle East & Africa

• NRI • Expatriate • Arab

Latin America

• Local Brazil • Local other countries • Expatriate

Europe

China Western Expatriate Japanese Expatriate Korea

• Worldwide Expatriate • Russia and Eastern European States

26

Summary

27

Summary Strategic plans being implemented Extending distribution potential in target markets •

33 new Terms of Business

•

Over 200 brokers on the ground

•

Larger networks, longer leadtimes

Settled long-outstanding litigation Strongly positive cash flows Underlying IFRS profit of £14.7m (2013: £12.4m) before CEC provision of £5.0m

Increased final dividend of 5.0p per share in line with guidance

Q&A

29

Appendix

FINANCIALS

30

Appendix

BUSINESS MODEL

31

Business Model

INTERNATIONAL POLICYHOLDERS

Client Funds

Hansard OnLine

INTERNATIONAL NETWORK OF INTERMEDIARIES

Investment within a Hansard life assurance wrapper Hansard reinsures the life insurance risk

Client Funds

Hansard OnLine

High net worth, mass affluent and expatriate segments

Hansard OnLine supports IFA / policyholder needs

IFAs / Private Banks / Other Financial Institutions

Policy retention drives fees and commissions receivable £0.94bn AuA at FY 2014 (FY 2013: £1.03bn)

UNDERLYING INVESTMENTS

32