Aberdeen Group Plc · LSE:ABDN

Aberdeen — abrdn — Merger or Acquisition (December 2021)

19 slides from Aberdeen's merger presentation, Dec 2, 2021

1. Slide 1: Proposed acquisition of interactive investor

   Proposed acquisition of interactive investor Enabling clients to become better investors 2 December 2021

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. Slide 13: Q&A

    Q&A 12 | abrdn plc

14. Slide 14: Appendix

    Appendix 13 | abrdn plc

15. 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

16. 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

17. 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

18. 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

19. 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.

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