Powerpoint slides for Bryson Annual Conference Oct 2013

Welcome to our 107th AGM 2013

Welcome to our Annual Conference

Hugh CrosseyChairman

Ireland Excellence Award

Staff receiving the Ireland Excellent Award at Titanic Belfast Jan 2013

John McMullanChief Executive

Social Enterprise delivering

• Total value of new contracts achieved by the Bryson Group in the last financial year.

£27.6 million

Our impact in numbers over the last 5 years

1,000,000 hours of care and support to older people helping them remain in

their own home.

17,798 homes insulated.

250,000 tonnes of materials recycled.

19,000 people helped to find a job and develop their skills.

8,600 vulnerable children and their families supported.

22,300 hours of advice and support to people seeking asylum from

across the world.

12,800 people learned new skills and enjoyed time on the River Lagan.

On a typical day we are delivering over 22,990 services to families and individuals and this short video clip

will give you a sense of the day in the life of Bryson

A day in the life of Bryson

How social enterprise can become a driver to create new jobs in a more

enterprising economy

Junior Minister OFMdFM

Jonathan Bell

Chief Operations Officer Big Society Capital

Caroline Mason

Big Society Capital

Bryson Charitable Group Annual Conference

Caroline Mason – 9th October 2013

Market Context

UNCLASSIFIED

Social enterprises

need access to new forms of

finance

This requires increasing the

supply of capital into the market,

and help in evidencing social

value.

As well as getting rid of a range of legal and financial

barriers

In essence, levelling the playing field

for social ventures

The impact is increased social

innovation, remodelling of

public services and more balanced

growth

Big Society Capital – Building the Social Investment market

HSBC Barclays

Lloyds TSB RBS

HSBC Barclays

Lloyds TSB RBS

Big Society Capital

Big Society Capital

Dormant AccountsDormant Accounts

Social Investment

Finance Intermediaries

Social Investment

Finance Intermediaries

Investors seeking to create a positive social

impact beyond financial return.

Investors seeking to create a positive social

impact beyond financial return.

Social Enterprises requiring capital to allow the organisation to grow

to scale.

Social Enterprises requiring capital to allow the organisation to grow

to scale.

£600m capital

Operating Principles

Independent Transparent Wholesale Self-sufficient

Intermediaries

InvestorInvestorInvestorInvestor

Intermediary•Bank•Fund•Social Impact Bond•Market Infrastructure

Intermediary•Bank•Fund•Social Impact Bond•Market Infrastructure

FrontlineFrontline

InvestorInvestorInvestorInvestor

FrontlineFrontline FrontlineFrontline FrontlineFrontline

Management of:•Risk assessment•Social and Financial Performance•Diversification•Reporting

Increased capacity:•Access to more pools of money•Diversity of Funding•Business support•Reporting

BSC’S role

INVESTOR

Grow the social investment intermediary market

Provide range of affordable and appropriate finance for frontline

social organisations

CHAMPION

Increase awareness + confidence in social sector and in social

investment

Work with sector to develop standardised framework for evidencing social outcomes

Big Society Capital: example commitments

Outcome/Beneficiary Approach Product Intermediaries Front Line

Education/NEET

Funding Social Sector Organisations for

Payment by Results contracts

Social Impact Bond

Employment/Long term

unemployedBusiness franchises Loan Fund

Health/Ageing and Disability

Capital raising to develop services

Charity Bond, Social Enterprise

Fund

Community/Community

Cohesion

Investment in affordable housing

and community energy generation

Specialist Funds

Investment Fund investees

Community Organisations

including Community Land Trusts

Greater Merseyside Connections

Scope

Tomorrow’s People

Triodos New Horizons

ThinkForward Social Impact / Private Equity Foundation

Franchising Works Licence Fund

Investing for Good

Nesta Impact Investing Fund

Franchisees

PURE

Community Generation Fund

Community Land & Finance

BSC Aims

Build a social investment market that supports organisations to:

•deliver social value from financial capital to become stronger and resilient and more able to effect change

•attract capital on basis of real, sustainable and proven delivery of social value

•innovate, replicate and grow new social business models (specific intervention, public service, trading model)

A strong social organisation• Mission Driven

Knows the change that it wants to make, who it serves and that can evidence that change

• Resilient

Strength and identity is shared by the Board, leaders, managers, staff and volunteers

• Sustainable

In the form of revenue streams, property, investments, diversified contracts, people, ideas and practices

• Competent

Well organised and able to marshall it’s assets

Northern Rock Foundation Third Sector Trends Study: Journeys and Destinations

A strong social sector• Turnover

– 63% of social enterprises expect their turnover to increase in the next 2 to 3 years compared to 37% SMEs

– 22% of social enterprises had a decrease in turnover compared to 31% of SMEs

– 38% of social enterprises increased their turnover compared to 29% of SMEs

• Trading– The most common source of income (32%) is trade from the general public– Almost half of all social enterprises now trade with the private sector– The proportion of trade with the public sector is increasing– 79% attracted new customers or clients

• Ethos– 30% of social enterprises state their principle trading activity as Education

and/or Employment and skills– 38% of social enterprise leaders are women and 15% are from BAME

communities– 52% actively employ people who are disadvantaged in the labour market

SEUK: State of Social Enterprise Survey 2013: The People’s Business

At their best, charities and social enterprises are already at scale, are resilient and can be very innovative

23

£156m

Turnover Activity Structure

Care services, information, products, training and research Charity with social enterprise arm

£81m Drug recovery and criminal rehabilitation interventions Charity

£193m Services and information for people with disabilities Charity

£76m Community leisure and fitness facilities Social enterpriseGreenwichLeisure

£90m Community health care services (NHS spin-out) Community Interest Company (CIC)

Many have been resilient in the

downturn

Many are highly innovative in their approach to social

issues

Org

tackles re-offending via tailor-made packages of training and peer-led support, accommodation and other services

reduces the number of children at risk of care in Essex County via targeted multi-systemic therapy to troubled families to strengthen their capacity to cope

56% of social enterprises reported an increase in turnover during the recession and are 20% more likely to survive for five years than the average UK business1

In 2011, 58% of social enterprises reported growth in the previous year whilst only 28% of SMES did2

1) NCVO, UK Civil Society Almanac (2010) 2) The Boston Consulting Group (2012) 2) SEUK, Fightback Britain (2010) 4)

Some social organisations are already at scale

and providing vital services

Opportunity

- BSC represents a significant pool of money available to be invested

- Enabling policy environment

- Change in society’s attitude towards how individuals and organisations spend and invest

- Understanding the link between evidencing social value and sustainability business

Opportunity for social organisations to grow and scale their impact

Are you seeking Social Investment?

Social Sector Organisation

Directory of Intermediarieswww.bigsocietycapital.com

Social Finance Intermediary

Online Expression of Interest www.bigsocietycapital.com

Ulster BankRichard Ramsey

9th October 2013Richard Ramsey

Chief Economist Northern [email protected]

Northern Ireland Economy

Slide 28

6 years since Northern Ireland’s Wile E. Coyote moment

The ‘NICE’ Decade

The ‘RUDE’ Awakening

Have we hit bottom yet?

Slide 29

Is the Northern Ireland economy experiencing a recovery?

“Yeah, but, no but, yeah but…”

Increasingly Economists are sounding likeVicky Pollard

Slide 30

NI recovery underway in terms of output…

Private Sector Business Activity - PMIs

30

35

40

45

50

55

60

65

Aug-04 Feb-06 Aug-07 Feb-09 Aug-10 Feb-12 Aug-13

NI UK RoI

Source: Markit & Ulster Bank NI PMI50 = threshold between expansion / contraction

Expansion

Contraction

**PMI Surveys Exclude Agriculture & Public Sector**

Slide 31

…and in terms of employment

NI & UK Full-Time Annual Employment Growth Employee Jobs

-15%

-10%

-5%

0%

5%

10%

Jun-93 Dec-95 Jun-98 Dec-00 Jun-03 Dec-05 Jun-08 Dec-10 Jun-13

Y/Y

UK NI RoI

Source: CSO, DFP & Nomis

Slide 32

NI Recovery Checklist

• New Car Sales Up

• Unemploymentfalling

• Business activity up

• Mortgage activity up

• Employment up

Recovery Checklist

• Insolvencies rising

• Retail vacancies

• Disposable income

• Construction jobs

• Housing starts

• Inward migration

Slide 34

The economy may have stopped falling but it still remains pretty frazzled

Slide 35

Northern Ireland Employment (Employee Jobs)

-40%

-30%

-20%

-10%

0%

10%

All Sectors Services Manufacturing Construction

Peak to Trough Recovery from Trough Q2 2013 Relative to Peak

Source: DFP, QES

NI’s employment recovery has been limited so far

Slide 36Slide 36

Consumers are experiencing ‘spreadsheet recovery’

Source: The Economist

Computer says Yes. But consumer says No!

Slide 37

No sign of a meaningful recovery with household incomes

UK Average Weekly Earnings & CPI Inflation

1.0%

2.7%

0

1

2

3

4

5

6

Aug-01 Aug-03 Aug-05 Aug-07 Aug-09 Aug-11 Aug-13

%

Ave Weekly Earnings 3m Y/Y % (Excl. Bonuses) CPI Y/Y

Source: ONS

Income squeeze

Does not include taxes or changes to benefits

NICE Decade

Slide 38

Headline inflation understates the true picture

Cumulative % Change in UK Consumer Prices since 'Credit Crunch' began (Aug 07 to Aug 13)

10.8%

20.7%

0%

10%

20%

30%

40%

50%

60%

70%

Food &Non-

AlcoholicBeverages

Food ElectricityGas &OtherFuels

TransportFuels &

Lubricants

TransportServices

Total CPI AverageEarnings*

Source: ONS, *Average Earnings as of July 2013

+68% +84%

+23%

+33% +42%

+41%

Slide 40

Don’t expect a recovery in the High Street

Slide 41Slide 41

And don’t forget about the totaliser…

Slide 42Slide 42

UK Public Sector Net Debt

0

250

500

750

1000

1250

1500

1750

2000

2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 2017-18

£Bn

Source: ONS, OBR March 2013

One Trillion Pounds of Debt

1.5 Trillion Pounds of Debt

…the National Debt totaliser is still rising!

Slide 43Slide 43

Economic Growth will be an uphill challenge…

Source: The Economist

?

Slide 44

The Coyote always returns, never gives up, becomes more innovative with whatever resources & the race never stops!

Slide 45

Slide 46Slide 46

DisclaimerThis document is issued for information purposes only for clients of Ulster Bank Group who are eligible counterparties or professional customers, and does not constitute an offer or invitation to purchase or sell any instrument or to provide any service in any jurisdiction where the required authorisation is not held. Ulster Bank and/or its associates and/or its employees may have a position or engage in transactions in any of the instruments mentioned.

The information including any opinions expressed and the pricing given, is indicative, and constitute our judgement at time of publication and are subject to change without notice. The information contained herein should not be construed as advice, and is not intended to be construed as such. This publication provides only a brief review of the complex issues discussed and readers should not rely on information contained here without seeking specific advice on matters that concern them. Ulster Bank make no representations or warranties with respect to the information and disclaim all liability for use the recipient or their advisors make of the information. Over-the-counter (OTC) derivates can involve a number of significant and complex risks which are dependent on the terms of the particular transaction and your circumstances. In the event the market has moved against the transaction you have undertaken, you may incur substantial costs if you wish to close out your position.

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Calls may be recorded.

Q&A

Please join us for lunch and we have three fringe events for you to choose

from and an opportunity to view the exhibition area

Thank you all for attending.