Slide 1: Half year results 2020
Together we Invest for a better future Standard Life Aberdeen Half year results 2020
Slide 2: Forward-looking statements
Forward-looking statements This document may contain certain ‘forward-looking statements’ with respect to the financial condition, performance, results, strategy, targets, objectives, plans, goals and expectations of the Company and its affiliates. These forward-looking statements can be identified
Slide 3: Keith Skeoch, Chief Executive
Keith Skeoch Chief Executive
Slide 4: Resilience and financial strength in uncertain environment and volatile markets
Resilience and financial strength in uncertain environment and volatile markets Resilient business performance Focusing on what we can control Robust investment performance – 68% AUM ahead of Continued focus on financial discipline – adjusted benchmark over 3 years operating expenses down 11% Redemp
Slide 5: Purpose-led response to COVID-19
Purpose-led response to COVID-19 Colleague safety and wellbeing Regular pulse surveys Supporting colleagues in shift Virtually all colleagues swiftly transitioned to home working, 73% feel proud to work for to greater organisational agility key workers supported Standard Life Aberdeen1 and resilienc
Slide 6: Robust investment performance
Robust investment performance Total return indices1 Total AUM ahead of benchmark2 140 140 140 FY 2018 FY 2019 H1 2020 130 130 130 1 year 3 years 5 years 120 120 120 62% 68% 65% (FY 2019: 74%) (FY 2019: 60%) (FY 2019: 67%) 110 110 110 100 100 100 90 90 90 • Process enhancement plans delivering robust
Slide 7: Improvement in redemptions in volatile markets
Improvement in redemptions in volatile markets First half year of positive net flows since merger Institutional and Wholesale (excl. LBG tranche withdrawals) Redemptions H1 2020 Gross inflows (1.0) £70bn (0.5) (2.1) Equities Fixed income 5.4 redemptions and net flows £49.8bn2 (1.4) Multi-asset 9.0 (
Slide 8: Benefiting from innovation across channels, asset classes and geographies
Benefiting from innovation across channels, asset classes and geographies Institutional and Wholesale Americas APAC EMEA Global • £14bn of AUM generated from new funds since China A Shares merger (average c50bps annual management >$1bn $625m EMD 2nd largest in world Launched Money Market charge1) ma
Slide 9: Management of investments to generate value
Management of investments to generate value Mutually beneficial strategic partnership Significant value realised from Indian investments £3.0bn £3.0bn • Cumulative £279m contribution to adjusted profits and £134m cash dividends received Cumulative stake sale £2.3bn • 14.43% holding in larger busines
Slide 10: Together we invest for a better future
Together we invest for a better future • COVID-19 impact on H1 2020 results mainly on revenue • Our purpose provides a clear focus to steer the business through challenging times • Our people are engaged around our common purpose and culture • By focusing on what we can control we have: • Improved i
Slide 11: Stephanie Bruce, Chief Financial Officer
Stephanie Bruce Chief Financial Officer
Slide 12: Analysis of profit
Analysis of profit H1 2019 H1 2020 £m £m Change • Capital management reflects investment losses due to market Fee based revenue 815 706 -13% volatility Adjusted operating expenses (673) (601) -11% Adjusted operating profit 142 105 • Lower share of profit from associates Capital management 22 (13) an
Slide 13: Revenue impacted by volatile market conditions
Revenue impacted by volatile market conditions Fee based revenue Movement in fee based revenue H1 2019 H2 2019 H1 2020 £m £m £m £815m +£77m +£26m £819m Institutional and Wholesale 513 498 445 (£11m) Strategic insurance partners 166 151 115 (£62m) £706m (£88m) (£24m) (£10m) Platforms and Wealth: LBG
Slide 14: Lower revenue yield due to changes in asset class mix
Lower revenue yield due to changes in asset class mix Reduced revenue yield due to movements in AUM Fee revenue yield – channels Institutional and Wholesale AUM H1 2019 – £239.8bn H1 2020 – £233.6bn H1 2019 H2 2019 H1 2020 bps bps bps 7% 10% Institutional and Wholesale 43.4 42.1 39.5 6% 26% 30% 8% S
Slide 15: Net flows by channel
Net flows by channel Strategic insurance partners Institutional and Wholesale Platforms and Wealth (excl. LBG tranche withdrawals) £30bn £30bn £30bn £28.0bn £25.5bn redemptions and net flows £19.3bn £17.2bn Gross inflows, £9.7bn £9.2bn £8.5bn £2.3bn £5.6bn £4.6bn £0bn £0bn £0bn £5.0bn £2.0bn £1.8bn
Slide 16: Continued focus on financial discipline
Continued focus on financial discipline Movement in adjusted operating expenses £673m (£34m) +£28m £601m (£3m) (£6m) (£57m) COVID-19 (c£10m) H1 2019 Synergies Other Inflation/ FX Other H1 2020 realised efficiencies investment • Synergies included lower staff and premises costs arising through the on
Slide 17: Transformation changes nature of cost base
Transformation changes nature of cost base 2019 2020 2021 2022 Annualised run-rate of £283m £323m £350m £400m synergies Integration and separation drives increased efficiency within cost base Investment Platform Separation from Phoenix Service Agreements • Delivering a single order management system
Slide 18: Continued improvement in financial strength
Continued improvement in financial strength Adjusted capital generation £m Sources of capital Uses of capital Adjusted profit before tax 195 £3.0bn Tax on adjusted profit (13) +£0.1bn Share of associates’ and JVs’ tax expense (19) +£0.7bn Surplus regulatory capital Adjusted profit after tax 163 (£0.
Slide 19: Resilient business and financial strength
Resilient business and financial strength • Underlying business momentum intact despite Investing in current environment the business • Continued focus on financial discipline • Financial strength provides resilience in periods of uncertainty Creating value Delivering • Maintained interim dividend a
Slide 20: Keith Skeoch, Chief Executive
Keith Skeoch Chief Executive
Slide 21: Summary
Summary • Delivering strong capital position • Improving investment performance for clients and customers • Investing in our people • Strengthening our leadership team • Creating a purpose-led common culture Strong foundations created for uncertain times ahead Standard Life Aberdeen plc 20
Slide 22: Questions
Halfyear results 2020 Questions Standard Life Aberdeen
Slide 23: Appendix
Halfyear results 2020 Appendix Standard Life Aberdeen
Slide 24: Adjusted profit before tax by segment
Adjusted profit before tax by segment Asset management, Insurance associates Platforms and Wealth and joint ventures Total H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 £m £m £m £m £m £m Fee based revenue 815 706 - - 815 706 Adjusted operating expenses (673) (601) - - (673) (601) Adjusted operatin
Slide 25: Associates and joint ventures adjusted profit before tax
Associates and joint ventures adjusted profit before tax Ownership at H1 2019 H1 2020 30 Jun 2020 £m £m Phoenix1 19.97% 53 57 HDFC Life 10.27% 24 9 Heng An Standard Life 50.00% 13 15 Insurance associates and JV adjusted profit before tax 90 81 Asset management associate and JV – HDFC Asset Managemen
Slide 26: Adjusting items
Adjusting items H1 2019 H1 2020 £m £m • Restructuring and corporate transaction expenses largely Adjusted profit before tax 280 195 funding integration and transformation programmes Adjusting items: • Gain on sale of Indian investments of £0.7bn - Restructuring and corporate transaction expenses (19
Slide 27: Fee revenue yield by channel and asset class
Fee revenue yield by channel and asset class Fee revenue yield by channel Average AUMA Fee based revenue Fee revenue yield H1 2019 H2 2019 H1 2020 H1 2019 H2 2019 H1 2020 H1 2019 H2 2019 H1 2020 £bn £bn £bn £m £m £m bps bps bps Institutional and Wholesale 238.4 234.7 226.8 513 498 445 43.4 42.1 39.5
Slide 28: Movement in AUMA by channel
Movement in AUMA by channel Market/Other Opening AUMA Gross inflows Redemptions Net flows movements Corporate actions Closing AUMA H1 H2 H1 H1 H2 H1 H1 H2 H1 H1 H2 H1 H1 H2 H1 H1 H2 H1 H1 H2 H1 2019 2019 2020 2019 2019 2020 2019 2019 2020 2019 2019 2020 20191 2019 2020 20192 20193 2020 2019 2019 202
Slide 29: Total AUM by asset class
Total AUM by asset class 30 June 2019 31 December 2019 30 June 2020 Institutional Strategic Institutional Strategic Institutional Strategic and insurance and insurance and insurance Wholesale partners Wealth1 Total Wholesale partners Wealth1 Total Wholesale partners Wealth1 Total £bn £bn £bn £bn £bn
Slide 30: Institutional and Wholesale AUM by asset class
Institutional and Wholesale AUM by asset class Opening AUM as at Gross Market and Corporate Closing AUM as at 1 Jan 2020 inflows Redemptions Net flows other movements actions 30 Jun 2020 £bn £bn £bn £bn £bn £bn £bn Developed markets equities 14.7 2.0 (2.0) - (1.6) - 13.1 Emerging markets equities 21
Slide 31: Registered office and website
Standard Life Aberdeen plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh, EH2 2LL. www.standardlifeaberdeen.com © 2020 Standard Life Aberdeen. All rights reserved.