Aberdeen Group Plc · LSE:ABDN
Aberdeen — abrdn — Merger or Acquisition (December 2021)
19 slides from Aberdeen's merger presentation, Dec 2, 2021
Slide 1: Proposed acquisition of interactive investor
Proposed acquisition of interactive investor Enabling clients to become better investors 2 December 2021
Slide 2: Builds leading position in high-growth UK market
Builds leading position in high-growth UK market Proposed acquisition of interactive investor for total consideration of £1.49bn Acquisition achieves scale in the high-growth direct investing market, accessing new customer segments and capabilities interactive investor is the UK’s leading subscripti
Slide 3: Scales access to high-growth UK savings market
Scales access to high-growth UK savings market Assets Under Administration Growth drivers Democratisation • Increased personal responsibility for financial futures of wealth • Wealth distribution shifting in favour of younger demographics UK savings • Increased adoption of digital channels by retail
Slide 4: Introducing interactive investor
Introducing interactive investor UK’s leading subscription-based platform with high-value No.2 customers £55bn UK direct 20%+ investing Market AUA platform by share¹ AUA Data-centric open-architecture platform helps drive customer engagement and acquisition 400k+ 45k+ Organic 17% Unique new Net flow
Slide 5: Leading subscription platform with high-value customers
Leading subscription platform with high-value customers Direct investing platform AUA (£bn) Number of direct investing customers (‘000) 404 1,645 231 c64% 136 higher AUA AUA per customer1 (£’000) per customer than closest 135 peer 82 82 55 19 Hargreaves Lansdown AJ Bell Hargreaves Lansdown AJ Bell 4
Slide 6: Insight, engagement and simple pricing model
Insight, engagement and simple pricing model Customer engagement and experience Customer-centric pricing Customer acquisition Digital functionality drives customer Attractive range of fixed fee subscription engagement, underpinned by data insights Cutting edge data stack drives customer bundles with
Slide 7: Growth momentum with increasing client activity
Growth momentum with increasing client activity Net flows (£bn) and as a proportion Organic new customers1 (‘000) and as a proportion of opening AUA of opening customer base 4% 9% 14% 17% 5% 6% 13% 16% 5.5 45.6 4.3 36.0 1.7 14.4 16.6 0.9 FY 2018 FY 2019 FY 2020 LTM June 2021 FY 2018 FY 2019 FY 2020
Slide 8: Attractive growth and efficiency profile
Attractive growth and efficiency profile Revenue and adjusted profit before tax (£m) Diversified sources of revenue £133m Margin 23% 26% 34% Treasury income3 18% • Interest earned on cash balances • Driven by interest rate environment 133 31% Account fees 90 • Range of fixed fee subscription options
Slide 9: interactive investor transforms our Personal vector
interactive investor transforms our Personal vector Illustrative Personal pro forma Personal vector combined vector + Fee based revenue £83m £116m1 £199m More than doubles our revenue Adjusted operating profit £3m £41m2 £44m Transforms our profitability AUMA £14bn £55bn £69bn c5x increase in our AUM
Slide 10: Shared vision of high-tech, high-touch model
Shared vision of high-tech, high-touch model High-tech investing High-touch financial planning Customers with more complex needs and / or larger portfolios, Target customers Customers with the confidence and appetite to invest directly who want help to plan, save and invest Digital platform offering
Slide 11: Optimal capital deployment for sustainable returns
Optimal capital deployment for sustainable returns c£4.5bn Acquisition funded by cash Issuing Additional Tier 1 debt to c£3.0bn optimise capital structure Value of Strong capital position – indicative listed c£2.8bn pro forma regulatory capital surplus investments1 Value of (post IFPR) of c£0.5bn po
Slide 12: Builds leading position in high-growth UK market
Builds leading position in high-growth UK market Acquisition achieves scale in the high-growth direct investing market, accessing new customer segments and capabilities interactive investor is the UK’s leading subscription-based direct investing platform and consumer champion Transforms our Personal
Slide 13: Q&A
Q&A 12 | abrdn plc
Slide 14: Appendix
Appendix 13 | abrdn plc
Slide 15: Transaction details and indicative timetable
Transaction details and indicative timetable Late 2 December February 2022 2021 May 2022 General Acquisition of interactive investor from its Transaction Meeting to AGM ultimate shareholders, including a fund announcement approve advised by J.C. Flowers & Co., for total transaction consideration of
Slide 16: Illustrative pro forma combined financial metrics
Illustrative pro forma combined financial metrics AUMA (£bn) Fee based revenue1 (£m) % of % of Combined Combined (30 June 2021) (30 June 2021) combined (LTM June 2021) (FY 2020) combined Investments vector 457 - 457 78% 1,208 - 1,208 76% Adviser vector 72 - 72 12% 155 - 155 10% Personal vector 14 55
Slide 17: Sources of information and bases of calculation
Sources of information and bases of calculation In this presentation, unless otherwise stated: All financial information presented other than financial information in respect of the abrdn Group, reflects reported results for interactive investor, which is the holding company of the interactive inv
Slide 18: Forward-looking statements
Forward-looking statements This document may contain certain ‘forward-looking statements’ with respect to the financial and actions of regulatory authorities; and the impact of changes in capital, solvency or accounting condition, performance, results, strategy, targets, objectives, plans, goals and
Slide 19: abrdn plc registered office and website
abrdn plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh, EH2 2LL www.abrdn.com © 2021 abrdn. All rights reserved.