St. James's Place Plc · LSE:STJ
St. James's Place — Investor Presentation (June 2022)
49 slides from St. James's Place's investor presentation, June 2022
Slide 1: Investor
S! Jamess Place VES NEL
Slide 2: Contents
Contents Overview: Our business Our new Our financial Appendix Business in detail business performance model and performance strategy 2
Slide 3: Overview: business model & strategy
O iew: busi © model & 5/2299 N \ J Sf y \ SJP
Slide 4: St. James's Place overview
St. James's Place overview Leading UK Wealth Differentiated advice-led Well positioned to benefit Management Company business model from long-term market Established 1991 Dedicated advice growth UK listed with market cap led distribution – Favourable demographic of c.£7 billion The Partnership trend
Slide 5: The market opportunity: rising retail wealth
The market opportunity: rising retail wealth UK aggregate wealth by age cohort 30% 27% 12 million 25% 24% 23% ‘mass affluent’ 20% and high net worth individuals… 15% …controlling £3.1tn of liquid assets 10% 10% 10% 5% 3% 3% 0% 0% 16 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85 and over 87
Slide 6: The value of advice
The value of advice Financial Investment Client net planning returns outcomes Trusted personal relationship 6
Slide 7: The market opportunity: rising demand for advice
The market opportunity: rising demand for advice Flexibility + Tax complexity Intergenerational complexity via ‘pension Wealth Transfer freedom’ Perfect environment for client-focused Decline of Growing UK advice business DB pensions savings gap 7
Slide 8: The market opportunity: undersupply of advice
The market opportunity: undersupply of advice Number of UK retail investment advisers The UK advice gap is large 50,000 45,000 40,000 Only a quarter of UK adults 35,000 currently seek advice 30,000 25,000 3.7 million individuals with £50k+ 20,000 of investable assets, are open to 15,000 advice but c
Slide 9: Our business model
Our business model Benefits Advice Our clients: an end-to-end, connected proposition focused on great long-term outcomes Platform & Vertical Administration Our Partnership: superior support integration to build a great business over the long-term Investments Our shareholders: long-term, sustainable
Slide 10: Our 2025 strategy
Our 2025 strategy Where we’re going Our vision Our 2025 goals ‘To support the UK's leading Financial c.10% 95% Significant annual growth in annual retention growth in cash Advisers with the best gross inflows of client FUM* result and technology, best shareholder operations and best proposition for
Slide 11: Our business priorities
Our business priorities Building Delivering value Our culture and community to clients through being a leading responsible our IMA business Building and protecting Making it easier Continued our brand and to do business financial strength reputation 11
Slide 12: Our business in detail
Our business ily Tai / SJP
Slide 13: The Partnership: fundamental to our business model
The Partnership: fundamental to our business model Clients 868,000+ Supporting clients The Partnership Building great 2,562 4,556 Financial businesses Partner businesses advisers Proposition £154 billion FUM Tech 13
Slide 14: The Partnership: why do advisers join and stay with SJP?
The Partnership: why do advisers join and stay with SJP? Strong Great client Strong products outcomes commercial and proposition Attraction and relationship retention Flexible business Comprehensive development corporate support 14
Slide 15: The Partnership: why do advisers join and stay with SJP?
The Partnership: why do advisers join and stay with SJP? Strong adviser retention A sustainable Value of long-term Mix of Academy pipeline for Partnerships and recruitment growth in the channels Partnership Average age 46 (lower than market) 15
Slide 16: The Partnership: securing tomorrow through our Academy
The Partnership: securing tomorrow through our Academy 34 844 2021 60% 350 8%+ 57% Average age Partners and Academy from non- new advisers of new client referred Advisers refreshed financial in training at investments by the delivered backgrounds end-2021 in 2021 Partnership 16
Slide 17: The Partnership: advisers by age band
The Partnership: advisers by age band Existing advisers New advisers 3% 1% 11% 15% 20% <35 <35 37% 35-45 35-45 21% 45-55 45-55 55-65 55-65 65+ 65+ 29% 33% 30% 17
Slide 18: The Partnership: driving productivity
The Partnership: driving productivity Targeted growth and development support Great client outcomes drive Business strong productivity consultancy 40% of new business Coaching and through referrals leadership development 18
Slide 19: The Partnership: investing in our future
The Partnership: investing in our future New and Utilisation of improved Partner lending to systems support business and tech development Targeted, data-led More shared field management servicing team support of clients 19
Slide 20: Our clients: snapshot
Our clients: snapshot 868,000+ 56 3% 5% Clients Average age Overseas clients 1% 53%/47% No ‘typical’ client - all want trusted, personal advice 13% Male/female split 3% 4% 15% 15% 25% 10% Geographic distribution of client FUM as at 31/12/21 20
Slide 21: Our clients: by age band
Our clients: by age band Existing clients New clients 6% 8% 23% 6% <30 19% 16% <30 30-40 30-40 16% 40-50 40-50 50-60 50-60 13% 60-70 60-70 70+ 70+ 22% 17% 26% 17% 21
Slide 22: Our investment proposition
Our investment proposition Stockbroking £154bn Discretionary Fund Management (DFM) Investment Management Approach (IMA) 22
Slide 23: Our investment proposition: recipe for success
Our investment proposition: recipe for success People & Team Our recipe Investment Data, Tech for long-term beliefs & Insights performance Investor Governance 23
Slide 24: Our investment proposition: our seven beliefs
Our investment proposition: our seven beliefs 1. Great client 2. Asset 3. Diversification 4. Active outcomes collection management 5. Understand 6. Disciplined 6. Responsible the risk research investment 24
Slide 25: Responsible Business Framework
Responsible Business Enable financial wellbeing for our clients, our people and our Framework communities Financial Wellbeing Lead the conversation on investing responsibly Vision Purpose Culture Investing Climate Responsibly Change Take action on climate change Strategic Enablers Community People G
Slide 26: Leading the conversation on investing responsibly
Leading the conversation on investing responsibly Responsible investment as standard − All our managers are UN PRI signatories − RI key to selection and monitoring process across all funds and strategies − Focus on stewardship and engagement Tailored and bespoke RI solutions also available for clien
Slide 27: Technology at SJP
Technology at SJP Bluedoor Enabling scalability and Delivering efficiency within SJP Scalability growth Next Generation Salesforce Client Experience (NGCX) Hyper-personalised service Efficiency Resilience delivery and efficiency Data &AI Reduce Reduce Leading to a data and AI complexity operational
Slide 28: Our new business performance
SJP Our new business BerporMmance
Slide 29: The Partnership
The Partnership 5,000 The Partnership grew 5% 4,500 in 2021 to 4,556 advisers 4,000 Strong pipeline for Academy enrolment 3,500 and experienced recruitment 3,000 350 new advisers in training in the 2,500 Academy at end-21 2,000 1,500 1,000 500 0 2014 2015 2016 2018 2019 2020 2021 29
Slide 30: Gross inflows: long-term track record
Gross inflows: long-term track record £20bn A record year for new business in 2021 £18bn − Gross inflows of £18.2 billion, up 27% £16bn − Strong underlying performance £14bn − Also benefiting from excess savings and a more favourable operating environment £12bn Strong start to 2022 with gross inflow
Slide 31: Building flows to 2025
Building flows to 2025 £bn Gross inflows: progress Growth in new business will not be linear 25 against our 2025 plan There will naturally be variations in growth rates from quarter to quarter and year 20 to year Great start to 2025 ambitions 15 10 5 0 2021 2022 2023 2024 2025 *Based on 2022 consens
Slide 32: Net inflows: long-term track record
Net inflows: long-term track record £12bn Record year for net inflows, up 34% to £10bn £11.0 billion, driven by: − Strong new business performance £8bn − Exceptional retention of client investments: 96% excluding regular withdrawals and £6bn maturities Maintaining our track record of net £4bn inflow
Slide 33: Funds under management
Funds under management £bn >15% p.a. compound growth over the last 5, 10 and 15 years 180 160 140 120 100 80 60 40 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 33
Slide 34: Our financial performance
Our financia Penton ance SJP
Slide 35: Strong 2021 financials
Strong 2021 financials £401.2m £16.57 51.96p £1,545.4m Underlying EEV NAV per share Full year dividend EEV operating cash result £16.57, up 14% 51.96 pence per profit £401.2 million, share, up 35% £1,545.4 million, up 52% up 68% Robust Solvency II position 35
Slide 36: Underlying cash result
Underlying cash result Underlying cash result up 52% to £m £401.2 million, driven by: 450 +52% − Growth in FUM in both 2020 and 2021 leading 400 401.2 to growth in net income from FUM 350 − Contribution of over £40 million to 2021 net 300 income from FUM due to maturing FUM 250 264.7 − Strength of n
Slide 37: FUM in gestation
FUM in gestation £m Contribution of gestation FUM to the Cash result Gestation balance now stands at 450 £49.3 billion 400 This will contribute over £390 million per annum to the Cash result from 350 2027 onwards when it all matures 300 − Using simple modelling which assumes for 250 example that FUM
Slide 38: EEV NAV per share
EEV NAV per share EEV NAV per share of £16.57, up 14% £ over past 12 months 16 Excludes additional c.£395 million 14 (or c. 73 pence per share) value 12 of pensions business falling outside of current contract boundaries 10 8 6 4 2 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 38
Slide 39: Dividends
Dividends Full year dividends set in line with policy at 70% of the Underlying cash result Full year dividend of 51.96 pence per share, growth of 35% Proposal final dividend of 40.41 pence per share 39
Slide 40: Longer-term outlook
Longer-term outlook Demand for trusted face to face financial advice remains as strong as ever St. James’s Place ideally placed − Academy − Proven investment approach − Modern and scalable infrastructure − Unique culture and refreshed brand Remain confident of achieving our 2025 ambitions and contin
Slide 41: Appendix
Appendix SJP
Slide 42: Net inflows: long-term track record
Net inflows: long-term track record 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 43: Our Net Zero commitments
Our Net Zero commitments #1 #2 #3 #4 Climate Net Zero Support our Net Zero in positive in our throughout our Partnership our investments operations supply chain becoming Net by 2050 by 2025 by 2035 Zero by 2035 43
Slide 44: SJP Asia: the market opportunity
SJP Asia: the market opportunity Singapore and Hong Kong 4.6m 300,000 people with US people with $100,000 US $1m – US $1m to invest – US $30m to invest = US $2tn total asset pool 44
Slide 45: SJP Asia: our proposition
SJP Asia: our proposition Who? What? Why SJP? International family Trusted brand, long-term wealth structuring relationships and great client outcomes Expats and high net Wealth extraction worth Singaporean for entrepreneurial Joint UK/Asia focus and Hong Kong families and expertise Nationals Long-t
Slide 46: SJP Asia: the 30-year-old disruptor
SJP Asia: the 30-year-old disruptor A clear plan to create long-term value Positioned to target expats and HNW individuals Positioned to target expats and HNW individuals Long-term, advice-led proposition Long-term, advice-led proposition 46
Slide 47: Analyst following
Analyst following Autonomous Andrew Crean KBW Charles Beeching Barclays Larissa van Deventer Mediobanca Fahad Changazi Bank of America Andrew Sinclair Morgan Stanley Louise Miles Berenberg Adam Barrass Numis David McCann Citi Andrew Baker Panmure Gordon Rae Maile Deutsche Bank Rhea Shah Peel Hunt St
Slide 48: Costs of a full advice service: SJP v UK wealth management peers
Costs of a full advice service: SJP v UK wealth management peers The results to the assessment at 31 March 2022: 3.5% 2.3% 1.3% The firm represented by the first bar (Reduction in Yield of 1.3% each year) does not offer an ongoing advice service. The figures shown have been produced by Ernst & Young
Slide 49: Investor relations
Investor relations Craig Gentle Hugh Taylor Chief Financial Officer Investor Relations Director Email: [email protected] Email: [email protected] Tel: +44 207 514 1963 Tel: +44 207 514 1963 www.sjp.co.uk/shareholders
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