Aj Bell Plc · LSE:AJB
Aj Bell — FY2021 Earnings Presentation
29 slides from Aj Bell's earnings presentation, Dec 2, 2021
Slide 1: Annual results for the year ended 30 September 2021
Annual results For the year ended 30 September 2021 Issued on 2 December 2021
Slide 2: Agenda
Agenda Title Page Business update 3 Financial update 16 Outlook 21 Appendix 25 Glossary 27 AJ Bell | Annual results for the year ended 30 September 2021 2
Slide 3: Business update
DAJBell Business update
Slide 4: FY21 highlights
FY21 highlights • Record organic growth – Total customers up by 87,449 to 382,754 and net inflows of £6.4 billon (FY20: £4.2 billion), leading to record closing AUA of £72.8 billion • Investment in new simplified propositions – launch of Dodl by AJ Bell and Touch by AJ Bell in 2022 will complement o
Slide 5: Key investment highlights
Key investment highlights Key investment highlight Description Our market A growing market within the UK retail savings and investment industry Our proposition An award-winning platform operating in both advised and D2C market segments, with in-house investment solutions Our customers A growing base
Slide 6: Our market: a growing market within UK retail savings and investment
Our market A growing market within the UK retail savings and investment industry We operate at scale in the growing advised and D2C market segments Regulation Figure 1 Total Advised D2C Platform • Investment Firm Prudential Regime effective from January 2022, Market size(1) market market market link
Slide 7: Our proposition
Our proposition An award-winning platform operating in both advised and D2C market segments, with in-house investment solutions Figure 2 Advised market Advised market D2Cmarket D2C market Flagship propositions Established platform propositions offering a wide range of investment choice and functiona
Slide 8: Our proposition: Advised platform
Our proposition: Advised platform Flagship proposition Soft launching in 2022 • Continued development of the proposition in the year: • A new streamlined, mobile-led adviser platform which will: – Adviser website improvements focused on ease of use – Additional flexibility within ISA accounts – Sit
Slide 9: Our proposition: D2C platform
Our proposition: D2C platform Flagship proposition Launching in 2022 • Several enhancements to the platform delivered: • A new investment app which aims to make investing more straightforward and accessible for retail investors – Live portfolio pricing launched – Streamlining of processes designed t
Slide 10: Our proposition: Investments
Our proposition: Investments A range of simple, transparent, low-cost investment solutions for advised and D2C customers • AJ Bell Funds • Managed Portfolio Service – 9 passive, multi-asset funds offering growth, income and – A range of risk-targeted model portfolios offering growth, responsible opt
Slide 11: Our customers
Our customers A growing base of loyal, high quality customers Figure 3 Figure 4 Advised D2C Customers Customers Average customer profile +17% in FY21 to 126,920 Average customer profile +40% in FY21 to 241,045 57 years old (FY20: 56) 44 years old (FY20: 43) AUA AUA £361k of AUA (FY20: £333k) £81k of
Slide 12: Our customers: D2C customer profile
Our customers D2C customer profile Record growth driven by younger customers looking to save for the long term Commentary Figure 5 Figure 6 Net new D2C customers (000s) Average customer age • Another year of strong organic growth in D2C customers 39 New customers in FY21 • Growth again driven by you
Slide 13: D2C customers – dealing activity throughout the pandemic
Our customers D2C customers – dealing activity throughout the pandemic Elevated levels of D2C dealing activity have moderated since UK restrictions were eased Figure 9 Deals per D2C customer account since October 2019 (rebased to 100) December 2020 UK national lockdowns - Post-Brexit trade deal agre
Slide 14: Platform AUA – gross inflows from new and existing customers
Our customers Platform AUA – gross inflows from new and existing customers FY21 FY20 Commentary Gross inflows Gross inflows • Record customer growth and improved investor Figure 10 £4.4bn £6.3bn £1.6bn confidence in the year helped to deliver a £1.1bn 25% 25% significant increase in gross inflows £4
Slide 15: Our people
Our people An entrepreneurial, founder-led management team and a highly engaged workforce Board of Directors Executive Management Board Commentary Les Platts Andy Bell Chairman 13 Founder and Chief Executive Officer 26 • Several recent senior appointments which strengthen the depth, diversity and sk
Slide 16: Financial update
DAJBell Financial update
Slide 17: FY21 financial highlights
FY21 financial highlights Figure 12 FY21 FY20 +/- Commentary • Revenue and PBT growth driven by the continued success of our Revenue £145.8m £126.7m 15% platform propositions Revenue margin 22.2bps 23.9bps (1.7bps) • Revenue margin decreased by 1.7bps, primarily due to the reduction in interest rate
Slide 18: Revenue analysis
Revenue analysis Revenue by proposition, nature of revenue streams and revenue margins Figure 13 FY20 FY21 (£m) (£m) Commentary 80.0 64.8 +11% 71.7 A well diversified revenue model – our mix of fixed fees and recurring 60.0 5.3 6.0 charges was resilient in the face of recent economic and capital mar
Slide 19: Cost and PBT Analysis
Cost and PBT Analysis Figure 14 FY20 FY21 (£m) (£m) Commentary +9% 11.1 • Cost growth in FY21 was lower than normal due to the impact of the pandemic on 10.2 certain brand and sponsorship activities – more opportunities anticipated in FY22 Distribution • The 9% increase in the year was primarily due
Slide 20: Capital and dividend
Capital and dividend Our highly cash generative and capital light model supports a progressive dividend Figure 15 Figure 16 Regulatory capital position Dividend payments £ million FY21 FY20 Pence per share FY21 FY20 +/- Total shareholder funds 130.7 109.5 Interim 2.46 1.50 64% Less: unregulated busi
Slide 21: Outlook
DAJBell Outlook
Slide 22: Financial outlook - guidance
Financial outlook - guidance Figure 17 FY22 previous guidance Updates to FY22 guidance Outlook for FY23 Advised D2C Non- Advised D2C Non- Platform Platform platform Platform Platform platform • Platform revenue margins expected to increase slightly, primarily due to Full-year Full-year Revenue Reven
Slide 23: Financial outlook – key revenue sensitivities and assumptions
Financial outlook – key revenue sensitivities and assumptions Interest income sensitivity • Estimated increase to revenue margins, assuming a base rate • Key assumptions: increase on 1 January 2022: –Interest rates received move in line with any increases to Bank of England base rate Advised FY22 FY
Slide 24: Outlook
Outlook • Continued market growth – the long-term growth drivers of the platform market remain strong and the outlook remains positive across both advised and D2C market segments • Reduced dealing activity – As seen in the second half of FY21, dealing activity is expected to remain at more normalise
Slide 25: Appendix
DAJBell Appendix
Slide 26: Appendix I: Platform Customers, AUA and AUM
Appendix I Platform Customers, AUA and AUM Figure 19 FY21 FY20 Commentary Advised D2C Total Advised D2C Total Customers platform Platform Platform platform Platform Platform • Another year of strong growth in customers and assets under administration: Opening customers 108,911 172,183 281,094 98,056
Slide 27: Glossary
DAJBell Glossary
Slide 28: Glossary
Glossary AGM Annual General Meeting AUA Assets Under Administration AUM Assets Under Management BPS Basis Points CET1 Common Equity Tier 1 CRD Capital Requirements Directive D2C Direct to Consumer DB/DC pension Defined Benefit / Defined Contribution Pension DFM Discretionary Fund Manager EMB Executi
Slide 29: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in it.