Aberdeen Group Plc · LSE:ABDN
Aberdeen — Standard Life Aberdeen — Merger or Acquisition (May 2017)
38 slides from Aberdeen's merger presentation, May 2017
Slide 1: Creating a Diversified World-Class Investment Company
Creating a Diversified World-Class Investment Company May 2017 1
Slide 2: Important notice and disclaimer
NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISIDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. This presentation has been prepared by Standard Life plc ("Standard Life") in connec
Slide 3: Transaction overview
Transaction overview Standard Life 3 Aberdeen
Slide 4: Highly complementary with improved choice and service to clients
Overview Investment capabilities Global distribution Financial benefits Appendix Highly complementary with • Delivering more choice and better service for our clients improved choice and • Minimal overlap across our combined market-leading investment capabilities service to clients • Complementary d
Slide 5: Progress since announcement
Overview Investment capabilities Global distribution Financial benefits Appendix • Published Standard Life prospectus and circular and Aberdeen has published its scheme document • Integration planning to deliver £200m of synergies per annum progressing to plan • Made application for FTSE sector recl
Slide 6: Future Board and management structure
Overview Investment capabilities Global distribution Financial benefits Appendix • Announced composition of the future Board • Agreed respective responsibilities of the Co-CEOs Sir Gerry Grimstone Simon Troughton Group Chairman* Deputy Chairman* • Agreed membership of executive committees of the enl
Slide 7: Leveraging the combined strengths of our well established brands
Overview Investment capabilities Global distribution Financial benefits Appendix Group Standard Life Aberdeen plc Pensions and Savings Investment Management Aberdeen Standard Life Standard Life Investments Leveraging the combined strengths of our well established brands 7
Slide 8: Ability to deploy Aberdeen and Standard Life investment componentry
Overview Investment capabilities Global distribution Financial benefits Appendix Income / Yield Growth Absolute Return Multi-asset Quantitative Fixed Income Equities Alternatives Uncorrelated Risk Managed Alpha Growth GEM Private Markets Illiquid Real Estate Multi Fund Preservation Liability Aware D
Slide 9: Example areas of scale and franchise strength
Overview Investment capabilities Global distribution Financial benefits Appendix Example areas of scale and/or franchise strength: • Developed Markets • Emerging Markets Equities • Global • Asia Pacific £152bn • New Active Specialities • Global • Smaller Companies: UK, European • Smaller Companies:
Slide 10: Combined AUM of £581bn by capability
Overview Investment capabilities Global distribution Financial benefits Appendix Overview of combined capabilities: Combined AUM of £581bn1 (AUA of £660bn) 120 Aberdeen Standard Life 101 100 93 Combined AUM (£bn) 80 72 31 59 60 8 51 90 42 40 60 35 34 14 28 62 8 24 51 21 51 18 20 14 22 22 15 27 28 7
Slide 11: Truly complementary investment expertise
Overview Investment capabilities Global distribution Financial benefits Appendix Consultant Recommendations1 £67bn in Morningstar 4/5 Star Rated Funds2 Minimal overlap across rated investment capabilities helps to ensure smooth integration and continuity of investment processes Truly complementary i
Slide 12: AUM by geography and asset class; revenue and earnings mix
Overview Investment capabilities Global distribution Financial benefits Appendix Private Markets and Hedge Funds Americas Real Estate 5% DM equities AUM by asset class 11% 6% 10% AUM by geography APAC Quantitative 5% 4% EM and APAC Standard Life ME&A equities Wealth 1% 12% 1% Europe Other multi-asse
Slide 13: Well positioned to meet current and future investment needs of clients
We are well positioned to meet the current and future investment needs of our clients Standard Life 13 Aberdeen
Slide 14: Global AUM by product: growth of 'new active'
Overview Investment capabilities Global distribution Financial benefits Appendix Global AUM, by product1 2008-15 CAGR $71tn • Global investment management market has grown 12% / $8tn +7% strongly helped by rising asset prices “New active” • Demand for passive / ETFs has increased 22% / $16tn +9% • H
Slide 15: Global net inflows 2016-2020
Overview Investment capabilities Global distribution Financial benefits Appendix 2016-2020 Global estimated net flows1 New active investment solutions set to be the main driver of global client demand 19% Alternatives2 “New active” 6% Active specialities • Traditional active products will continue t
Slide 16: Scale and breadth across the asset classes
Overview Investment capabilities Global distribution Financial benefits Appendix c1/3rd Solutions passive Passives/ETFs • A UK leader in active solutions and absolute • Quantitative strategies capability with £62bn2 return AUM • Leading manager of outsourced insurance • Smart Beta multi-factor, mini
Slide 17: Leveraging global distribution
Leveraging global distribution Standard Life 17 Aberdeen
Slide 18: Powerful and truly global distribution reach
Overview Investment capabilities Global distribution Financial benefits Appendix Brussels Aberdeen Amsterdam Edinburgh Oslo Leeds Luxembourg Stockholm Birmingham Helsinki London Copenhagen Bristol Potsdam Toronto Beijing Dublin Frankfurt Boston Seoul Jersey Munich Stamford Tokyo Paris Stuttgart New
Slide 19: Opportunity to leverage complementary distribution strengths
Overview Investment capabilities Global distribution Financial benefits Appendix TOP 50 TOP 50 CLIENTS 4 CLIENTS Overlap Opportunity to leverage complementary distribution strengths: • Sovereign wealth funds and private banks • UK Wholesale • Global Institutional • Local presence across Asia • Liabi
Slide 20: Large developed market asset pools and structural growth from emerging markets
Overview Investment capabilities Global distribution Financial benefits Appendix UK North America $4tn 8.6% Europe ex UK Japan $40tn $4tn 4.7% $20tn Asia ex Japan 5.5% 5.3% $4tn 13.5% Latin America Australia $1.3tn 2015 Industry 12.2% $1.7tn AUM 10.1% Forecast growth Large developed market asset poo
Slide 21: Increasing our share of assets in the world's largest markets
Overview Investment capabilities Global distribution Financial benefits Appendix Increasing our share of assets in worlds’ largest asset management markets • Scale in the UK provides platform for growth in North America, Europe and Japan/Australia • Taking our global product and solution set to clie
Slide 22: Strong positions in the world's fastest growing asset management markets
Overview Investment capabilities Global distribution Financial benefits Appendix Opportunity to bring global products to clients in the region • Manage £29bn for clients and customers in the region from 12 distribution centres with c140 distribution professionals • Benefiting from an increasingly br
Slide 23: Two valuable and fast growing Indian businesses
Overview Investment capabilities Global distribution Financial benefits Appendix Creating India’s leading private life insurer • HDFC Life ranked 2nd for new business sales in the private life insurance market1 • Merger2 with Max Life would create India’s leading private life insurer: • Would hold a
Slide 24: Well-positioned to capture asset growth in pensions and savings market
Overview Investment capabilities Global distribution Financial benefits Appendix Advised platform and DC pension market expected to grow strongly Workplace and Retail attracting steady and resilient flows3 £1tn £125bn 10% +9% £103bn percentage of opening AUA +8% +8% +8% +8% £725bn Workplace and Reta
Slide 25: Powerful pension and savings distribution to leverage enhanced investment capabilities
Overview Investment capabilities Global distribution Financial benefits Appendix Wrap platform AUA by asset manager Workplace AUA by asset manager Managed by Managed by other asset other active managers managers 69% 2016 16% Managed by 2016 Wrap Standard Life Investments Workplace AUA 71% AUA £31.9b
Slide 26: Compelling financial benefits
Compelling financial benefits Standard Life 26 Aberdeen
Slide 27: Integration principles and cost synergies
Overview Investment capabilities Global distribution Financial benefits Appendix • Safeguard clients’ interest and minimise disruption during integration process Integration • Focus on retaining key talent principles • Operate as a global unified investment management business with regional hubs • T
Slide 28: Strong cash generation supporting investment and shareholder returns
Overview Investment capabilities Global distribution Financial benefits Appendix £1,000m £865m 19.82 dividend per share (p) 18.36 £363m 17.03 Standard Life £640m 15.80 14.70 13.80 £251m 13.00 12.24 11.50 11.77 10.80 £502m Aberdeen £389m Standard Life £0m 2016 2016 Cash Declared 4 generation2 and 200
Slide 29: Appendix
Appendix Standard Life 29 Aberdeen
Slide 30: Key terms
Overview Investment capabilities Global distribution Financial benefits Appendix • Recommended all-share merger • Commitment to leverage both brands Key terms • Exchange ratio of 0.757 New Shares for each Aberdeen share • Pro-forma combined market capitalisation of £11.4bn1 • Combined Group Board dr
Slide 31: Principal events and timetable
Overview Investment capabilities Global distribution Financial benefits Appendix Principal events Time and/or date Publication of Prospectus, Circular and Scheme Document 9 May 2017 Latest time for receipt of forms of proxy for the Standard Life General Meeting 6.00pm on 15 June 2017 Voting record t
Slide 32: Growing assets under administration
Overview Investment capabilities Global distribution Financial benefits Appendix Growing assets under administration £5.9bn £361.7bn £357.1bn £0.3bn £0.0bn (£1.6bn) FY 2016 Growth Mature Other Market/ Q1 2017 AUA channels fee books net flows1 other AUA net flows net flows movements Investment 1 year
Slide 33: Growth channels net flows
Overview Investment capabilities Global distribution Financial benefits Appendix Growth channels net flows Growth channels net flows (ex. GARS) Q1 2017 Q1 2016 Q1 2017 Q1 2016 Net flows £bn £bn Net flows (ex. GARS) £bn £bn Institutional (1.1) 0.92 Institutional 0.4 (0.2)2 Wholesale (0.7) 0.1 Wholesa
Slide 34: Resilient financial performance
Overview Investment capabilities Global distribution Financial benefits Appendix Resilient Financial Performance Recovery in flows across a number of asset classes 1H 2017 1H 2016 1Q 2017 2Q 2017 1H 2017 FY 2016 Total Income £534.9m £483.6m Net flows £bn £bn £bn £bn Total Expenses (£346.3m) (£327.7m
Slide 35: Combined profit overview
Overview Investment capabilities Global distribution Financial benefits Appendix Standard Life Pensions India and Standard Life Aberdeen Other2 Investments and Savings China (Dec-16) (Sept-16) Total income3 885 995 17 (112) 1,785 1,007 Total expenses (537) (543) (22) (57) (1,159) (679) Other 35 (90)
Slide 36: Workplace and Retail net inflows and AUA
Overview Investment capabilities Global distribution Financial benefits Appendix Steady net inflows throughout the investment cycle £2.5bn Workplace and Retail net inflows £0bn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 2015 2016 2017 Growing AUA throughout the inv
Slide 37: Strategic partners
Overview Investment capabilities Global distribution Financial benefits Appendix Year Outsource Manufacturing Distribution Partner Market Relationship Partner Partner Partner Established Mitsubishi UFJ Japan 2008 - Lloyds Banking Group United Kingdom 2014 - HDFC Asset Management India 1999 - Heng An
Slide 38: Websites
www.standardlife.com www.aberdeen-asset.com 38
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