Aberdeen Group Plc · LSE:ABDN
Aberdeen — Standard Life Aberdeen — Investor Presentation (May 2018)
37 slides from Aberdeen's investor presentation, May 30, 2018
Slide 1: Building a world-class investment company
Standard Life Aberdeen plc Building a world-class investment company 30 May 2018
Slide 2: Forward-looking statements
This presentation may contain certain “forward-looking statements” with respect to the financial condition, performance, results, strategy, objectives, plans, goals and expectations of Standard Life Aberdeen plc (“Standard Life Aberdeen”) and its affiliates. These forward-looking statements can be i
Slide 3: Strategic progress towards building a world-class investment company
Strategic progress towards building a world-class investment company With increasing momentum from transformation across our business • Sale of mature insurance books simplifies our business and balance sheet, completing the transformation to a capital-light business • Business with significant mome
Slide 4: Sale of insurance business completes our transformation to a capital-light business
Sale of insurance business completes our transformation to a capital-light business Strong strategic rationale and financial benefits for shareholders Clear strategic • Increased focus on investment company business model rationale • Enhancing strategic partnership with Phoenix Group creating a new
Slide 5: Increasing momentum across our business
Increasing momentum across our business With excellent progress on merger integration Combined distribution team focused on Increased pace of innovation in Focused on delivering serving clients and driving flow “new active” investment capabilities strong investment outcomes across a connected busine
Slide 6: Simplifying our business
Simplifying our business Increased focus on financial discipline, efficiency and driving growth Americas UK EMEA Asia Institutional Wholesale Institutional Wholesale Retail Institutional Wholesale Institutional Wholesale Global Functions Operating as a single business with global functions improving
Slide 7: Proposed return to equity shareholders
Proposed return to equity shareholders Realising and returning substantial value for shareholders Proposed return1 to equity shareholders up to £1.75bn £1.0bn up to £0.75bn Proposed return1 of capital to equity holders = B Share Scheme and Share Capital Consolidation + Share Buyback Programme To com
Slide 8: Clear path to EPS accretion from 2020
Clear path to EPS accretion from 2020 Supporting our progressive per share dividend policy Loss of declining Reduced number of Reduced coupon Profit contribution Simplification transaction drivers profit from disposed shares following payments by £53m from c19.99% stake driving £100m of Shorter-term
Slide 9: Well positioned to drive sustainable long-term growth
Well positioned to drive sustainable long-term growth
Slide 10: Our investment credentials to deliver better outcomes for clients
Our investment credentials to deliver better outcomes for clients Connected across teams, asset classes, our business and to our clients We believe: High quality research and Connected teams In generating fundamental investment deliver better positive client understanding underpin investment results
Slide 11: Real strength, depth and scale in key areas of growing global client demand
Real strength, depth and scale in the key areas of growing global client demand With a track record of innovation in next generation “new active” propositions 2016-2020 Global estimated net flows1 Positioned to benefit from strong growth in “new active” investment capabilities Alternatives Solutions
Slide 12: Leveraging our three distribution channels
Leveraging our three distribution channels Expertise in asset management combined with access to fast growing retail markets Institutional – Global Wholesale – Global Retail – UK 43 rated strategies across a broad range of £57bn in Morningstar 4/5 Star UK advice market and platforms asset classes Ra
Slide 13: Retaining valuable and fast growing retail platforms and financial advice capability
Retaining valuable and fast growing retail platforms and financial advice capability Increasing penetration of the UK Retail market Strong growth in AUA, flows and revenue Retail platform profitability (Wrap, Elevate and Parmenion) £60bn £145m1 £150m 20162 2017 YoY growth Fee based revenue £122m £14
Slide 14: Unique long-term strategic partnership with Phoenix creating a new distribution channel
Unique long-term strategic partnership with Phoenix creating a new distribution channel Mutually beneficial partnership with opportunity to drive profitable growth for both partners Standard Life Aberdeen (SLA.LN) Phoenix Group (PHNX.LN) World-class investment company Pre-eminent closed life insuran
Slide 15: Balancing returns to shareholders with investment for growth
Balancing returns to shareholders with investment for growth Up to £9.3bn of capital returned to shareholders since 2006 Track record of driving returns to shareholders £2.5bn £2.34bn Total dividend/return of capital1 £1.75bn Up to £0.78bn £0.66bn £1.75bn4 £0.30bn £0.05bn £0.59bn £0.61bn £0.64bn £0.
Slide 16: Building a diversified world-class investment company
Building a diversified world-class investment company One simplified business with multiple sources of growth and valuable investments Our channels Institutional – Global Wholesale – Global Retail – UK Broad and compelling range of innovative “new active” and quant investment solutions1 Private mark
Slide 17: Strategic progress towards building a world-class investment company
Strategic progress towards building a world-class investment company With increasing momentum from transformation across our business • Sale of mature insurance books simplifies our business and balance sheet, completing the transformation to a capital-light business • Business with significant mome
Slide 18: Questions
Standard Life Aberdeen Questions
Slide 19: Appendix
Standard Life Aberdeen Appendix
Slide 20: Building a diversified world-class investment company
Building a diversified world-class investment company Transforming to a well-diversified capital-light fee based investment company 1825 1990s 1998 2006 2010 2014 2015 2017 2018 Standard Life Europe’s largest Standard Life Demutualised and listed on Sold SL Bank Acquired Sold Canadian Merger to crea
Slide 21: Expected timetable of principal events
Expected timetable of principal events Principal events Time and/or date Publication of Circular 30 May 2018 Latest time for receipt of forms of proxy for the Standard Life Aberdeen General Meeting 6.00pm on 21 June 2018 Voting record time for the Standard Life Aberdeen General Meeting 6.00pm on 21
Slide 22: Converting Solvency II capital resources into tangible capital
Converting Solvency II capital resources into tangible capital Capital resources £7.9bn (£2.1bn) (£0.1bn) £3.3bn2 £3.0bn (£0.8bn) (£0.3bn) (£4.9bn) Solvency II Sub-debt Other Remove Sale Disallowed Estimated Estimated own funds not CRD IV S2/CRD IV contribution proceeds portion transaction CRD IV3 a
Slide 23: Significantly strengthened holding company liquid resources
Significantly strengthened holding company liquid resources Significant liquid resources over and above ongoing requirements to invest for growth Holding company liquidity £0.8bn £4.0bn (£0.3bn) £2.3bn +£2.8bn £1.2bn Pre-transaction Cash proceeds Repayment of Estimated Post-transaction liquid includ
Slide 24: Reducing leverage reflecting transformation to a fully fee based business
Reducing leverage reflecting transformation to a fully fee based business Further opportunities to optimise debt structure over time in line with asset management peers Outstanding debt Impact of transition to CRD IV2: • All existing SII debt will lose regulatory credit under CRD IV2 £1.9bn • More l
Slide 25: Summarised pro forma statement of net assets of the Retained Group
Summarised pro forma statement of net assets of the Retained Group Adjustments Intercompany and other As at 31 December 2017 Standard Life Aberdeen Group Transferring Group Net proceeds adjustments Pro forma assets £m £m £m £m £m Intangibles and deferred acquisition costs 5,126 (709) - - 4,417 Inves
Slide 26: Historical adjusted profit before tax: Standard Life Aberdeen Group
Historical adjusted profit before tax: Standard Life Aberdeen Group Intercompany and other Reported (pro forma basis)1 Remove Transferring Group2 Total continuing operations3 adjustments Standard Life Aberdeen Group 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 £m £m £m £m £m £m £m £m
Slide 27: Historical adjusted profit before tax: Standard Life Pensions and Savings
Historical adjusted profit before tax: Standard Life Pensions and Savings Intercompany and other Reported Remove Transferring Group Total continuing operations adjustments Standard Life Pensions and Savings 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 £m £m £m £m £m £m £m £m £m £m £m
Slide 28: Growing assets, improving flows and profitability across our platforms
Growing assets, improving flows and profitability across our platforms Helping to drive down unit costs across the group towards a 60% cost/income ratio Wrap Elevate Parmenion Platforms Total 2017 2016 2017 20161 2017 20161 2017 20161 Fee based revenue £93m £77m £38m £34m £14m £11m £145m £122m Adjus
Slide 29: Building out our national financial planning and advice business – 1825
Building out our national financial planning and advice business – 1825 Capitalising on the growing need for advice in the UK 1825 Building out national coverage • Launched in 2015 and benefiting from growing need for advice • Building scale and aiming for national UK coverage with over 150 financia
Slide 30: Valuable investment in Phoenix – a business with clear momentum
Valuable investment in Phoenix – a business with clear momentum A strategic investment in a growing back-book consolidator of choice De-gearing Building financial strength Driving growth • 2010: premium listing on LSE and • 2016: acquisition of Axa Wealth and • 2018: acquisition of SLAL expected in
Slide 31: With significant growth opportunities in UK and now also in Europe
With significant growth opportunities in UK and now also in Europe Providing asset management for pre-eminent back-book consolidator of choice Wide range of opportunities for Phoenix Increased opportunities in Europe UK and Europe insurance industry is reshaping: • Divergence between capital-light a
Slide 32: HDFC AMC – India's leading asset manager
HDFC AMC – India’s leading asset manager A fast growing business leveraging one of India’s most valuable brands1 AUM of £34.0bn with CAGR of 24% over the last 5 years2 Proposed IPO of HDFC AMC Largest 5 Indian Asset Managers3 INR3,000bn R2,933bn HDFC Assets under management3,4 AMC Peer 1 Peer 2 Peer
Slide 33: HDFC Life – a leading private Indian life insurer
HDFC Life – a leading private Indian life insurer A fast growing business leveraging one of India’s most valuable brands1 Consistently ranked in top 3 private life insurers in India2 Successful IPO of HDFC Life completed INR250bn 19.1% 20% INR500 R491 Share of private life insurance market3 17.2% 15
Slide 34: Well positioned to benefit from growth opportunities in China
Well positioned to benefit from growth opportunities in China The world’s third largest insurance market Our JV Heng An Standard Life (HASL) is making steady progress Well positioned in the world’s third largest insurance market Share of adjusted PBT £10m £10m £7m £4m £2m (£7m) (£9m) (£10m) Province
Slide 35: Track record of innovation in "new active" investment solutions
Track record of innovation in “new active” investment solutions With increased pace of innovation post merger AUM over 5 years since AUM 3 to 5 years since AUM 1 to 3 years since AUM <1 year since launch launch launch launch Corporate Euro Club Enhanced MyFolio £13.3bn £1.2bn £1.1bn Bond £1.5bn I, I
Slide 36: Building a strong platform to compete globally
Building a strong platform to compete globally Capitalising on global opportunities Aberdeen Brussels Amsterdam Oslo Edinburgh Stockholm Leeds Luxembourg Helsinki Birmingham Toronto Copenhagen Beijing London Boston Potsdam Seoul Bristol Stamford Frankfurt Tokyo New York Dublin Munich Shanghai Los An
Slide 37: Standard Life Aberdeen plc is registered in Scotland (SC286832) at Standard Life House, 30
Standard Life Aberdeen plc is registered in Scotland (SC286832) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. www.standardlifeaberdeen.com © 2018 Standard Life Aberdeen, images reproduced under licence. All rights reserved.
Standard Life Aberdeen — Investor Presentation (May 2018) on 6ix