Aberdeen Group Plc · LSE:ABDN
Aberdeen — abrdn — Investor Presentation (November 2022)
26 slides from Aberdeen's investor presentation, Nov 23, 2022
Slide 1: Spotlight on Adviser
Spotlight on Adviser 23 November 2022
Slide 2: Agenda
Agenda Introduction Stephanie Bruce abrdn Adviser Noel Butwell Differentiating through Russell Bignall experience Stephanie Bruce Noel Butwell CFO abrdn CEO Adviser Our business model Jonny Black Driving shareholder Noel Butwell value Q&A Russell Bignall Jonny Black Managing Director Sales, Adviser
Slide 3: Our strategy
Our strategy We enable our clients to be better abrdn plc To deliver client-led growth investors Three vectors addressing different client groups supported by content Investments Adviser Personal Regional and national financial advisers Individuals Intermediaries Institutional Wholesale In
Slide 4: A compelling market opportunity
A compelling market opportunity Strong dynamics in the UK market Market trends UK Savings Market1 £3.7tn • Shift in responsibility onto the individual for their Democratisation of finance own financial affairs Adviser • Complexity of needs continues to drive growing Market2 Advice gap demand for adv
Slide 5: Structural growth market
Structural growth market 19% CAGR over last 10 years with substantial growth expected to continue Predicted adviser platform asset growth1 £1,200bn Opportunity 16% to expand £1,000bn leading position in a 11% growing £800bn market 8% £600bn 19% CAGR £400bn Growth by unlocking £200bn advisers’ capaci
Slide 6: abrdn Adviser
abrdn Adviser 6 | abrdn.com
Slide 7: Our market leading position
Our market leading position We are No. 1 in the UK adviser platform market by AUA1 Significant penetration partnering with 50% of UK adviser firms Leading service offering with 95% customer satisfaction score Strongly positioned via technology and focus on client journeys Underpinned by financial st
Slide 8: abrdn already provides full spectrum wealth offering
abrdn already provides full spectrum wealth offering Investment Adviser Face-to-face Hybrid D2C platform Discretionary solutions platform advice robo advice ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ - ✓ ✓ - ✓ ✓ - ✓ ✓ Planned ✓ ✓ - ✓ ✓ - ✓ ✓ ✓ - - - ✓ - ✓ - ✓ Planned - ✓ - - - - 8 | abrdn.com Source: Publicly available inform
Slide 9: Our platform
Our platform Adviser Onboarding One (digital) signature does it all – from account opening to drawdown SIPP Drawdown ISA Personal International including Portfolio & Onshore SIPP drip- Bond One of the fullest feed and most flexible Investments A vast investment range available from discounted funds
Slide 10: Growing from a market leading position
Growing from a Outstanding position to deliver on what market leading clients tell us matters to them1 position Good online Financial Low overall cost to Efficient Range of products functionality strength/stability clients administration and wrappers Delivering against those factors that directly in
Slide 11: Differentiating through experience
Differentiating through experience 11 | abrdn.com
Slide 12: Winning with clients
Winning with Doing business their way clients 1 A tailored user experience with business solutions built for advisers and their clients Delivering a personalised service with products that make advisers more valuable to clients and their families Making things easy 2 Returning capacity back to advis
Slide 13: Adviser experience programme
Adviser experience programme Building on our strength of offering to do more for UK advisers so they can do more for their clients Next Continuous Completed release innovation • Amazon Web Service • Modernised, intuitive user interface • Salesforce Service Cloud • Enhanced client reporting • Fully e
Slide 14: Unlocking capacity in processes
On-boarding clients Unlocking capacity in c1 million minutes saved per year 50% fewer inputs 8 mins quicker c2,500 working days saved based on 2021 quote volumes processes On-going reviews Investment Trends research shows strong demand to serve more 30 15-30 mins saved 10,700 Fully customisable to c
Slide 15: Our business model
Our business model 15 | abrdn.com
Slide 16: High quality customer base
High quality customer base A high quality customer base delivering returns £68bn through the customers financial journey AUA Bonds: An average of 1.65 wrappers per customer attracting stickier assets and lower £5bn cost to serve GIA: £9bn 97% customer retention rate highlighting quality of service a
Slide 17: Track record of consistent, high margin performance
Track record of consistent, high margin performance Consistent growth in a volatile market Driving strong profit and margin performance AUA 67% 63% 57% 59% 59% £90bn Cost of living crisis £91m £92m COVID £87m £80bn impact Growth £70bn through £69m £68m DB transfers £60bn £50bn £38m £37m £37m £40bn £
Slide 18: Sources of growth and flows
Sources of growth and flows 1. Existing customers 2. Existing clients 3. New clients Wrappers per customer Primary partnerships Client advocacy 1.65 44% of AUA c40% Now Future Now Future • 245k customers without a SIPP with us • Primary firms use us for 70% of their flows • c40% of advisers recommen
Slide 19: Sources of revenue and pricing
Sources of revenue and pricing Platform charges Cash margin ✓ Sustainable, competitive pricing model with strong value for money ✓ Interest earned shared between customer and abrdn ✓ Family linking available to support wealth transfer ✓ Two main reasons advised clients hold cash: ✓ Innovative and on
Slide 20: Drivers of revenue
Drivers of revenue Additional revenue streams Summary of revenue drivers • Acquisition of SIPP expected to complete in Historic repricing ensures stable competitive position SIPP charges H2 2023 • Brings new revenue streams for abrdn SIPP cash Cash margin policy • No additional cost to customer or a
Slide 21: A client-focused efficient model
A client-focused efficient model Deploying a “best of both” model, focusing on areas impacting client experience abrdn strengths 67% 63% 57% 59% 59% ✓ Client and customer telephony and experience ✓ Proposition and innovation £54m £54m £50m ✓ Process design £46m ✓ Distribution and marketing £43m £54m
Slide 22: Driving shareholder value
Driving shareholder value 22 | abrdn.com
Slide 23: Strongly positioned to drive shareholder value
Strongly positioned to drive shareholder value Market Opportunity ✓ New revenue streams ✓ Market leading position ✓ “Best of both” operating model ✓ Structural growth forecast at 11% CAGR1 ✓ Market share growth driven by adviser experience programme Technology Team ✓ Future-fit core ✓ Diverse experi
Slide 24: Q&A
Q&A 24 | abrdn.com
Slide 25: Forward-looking statements
Forward-looking statements This document may contain certain ‘forward-looking statements’ with respect to the financial COVID-19 (coronavirus) outbreak; climate change and a transition to a low carbon economy condition, performance, results, strategies, targets, objectives, plans, goals and expectat
Slide 26: abrdn plc registered office
abrdn plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh, EH2 2LL www.abrdn.com © 2022 abrdn. All rights reserved.