Aberdeen Group Plc · LSE:ABDN
Aberdeen — FY2021 Earnings Presentation
27 slides from Aberdeen's earnings presentation, Mar 1, 2022
Slide 1: abrdn plc Full year results 2021
abrdn plc Full year results 2021 1 March 2022
Slide 2: Welcome / Agenda
Welcome Agenda Delivering on our Stephen Bird strategy for growth Financial progress Stephanie Bruce and capital discipline Driving growth and Stephen Bird shareholder returns Stephen Bird Stephanie Bruce Q&A session Stephen Bird Chief Executive Officer Chief Financial Officer Stephanie Bruce René B
Slide 3: Delivering on our strategy for growth
Delivering on our strategy for growth Arresting revenue A global decline and improving investments company operating leverage High single 2021 digit 3-year revenue CAGR 2020-2023 Fee based revenue £1,515m +6% Improvement in +15ppts cost/income ratio +6ppts Adjusted operating profit £323m +47% 6ppts
Slide 4: Strong progress in 2021
Strong progress in 2021 Extended and Completed Sold Simplified Launched simplified investment Enablers non-core management new unified relationship platform assets operating model brand with Phoenix integration Capitalising on our Focusing on core No. 1 position in UK Building real scale in Expandin
Slide 5: Our client-led strategy for growth
Our client-led strategy for growth We enable our clients To deliver client-led growth to be better investors Our purpose and strategy We harness The curiosity of our We leverage the power talent creates technology to connect of time opportunity Investments Adviser Personal Three distinct, connected
Slide 6: The power of a client focused business model
The power of a client focused business model Investments Adviser Personal 5% revenue growth 30% revenue growth 15% revenue growth 36% increase in adjusted 54% increase in adjusted £8m adjusted operating profit operating profit operating profit Improving flows positon Doubled net flows to £3.9bn Reco
Slide 7: Global investment strengths
Global investment Core strengths with scale and competitive advantage strengths Asia and EM Real assets Solutions UK wealth Leading active Asian Top 5 European real Customising A leading and EM asset estate investment investment outcomes UK domestic manager manager for strategic partners asset manag
Slide 8: Driving growth
Driving growth Investments Adviser Personal Strength in Asia and emerging Constant improvement in Transforming scale with interactive markets - expanding distribution adviser experience investor, the No. 2 market and manufacturing in Asia disruptor New technology enables High performing real assets
Slide 9: Driving growth – interactive investor
Driving growth Transforming the Personal vector – interactive investor Total AUA per Daily average New customer1 customers1 retail trades customers2 No.1 subscription-based direct £145k c403k c22k 47.4k investment platform – AUA c£59bn1 +5% +46% +15% +32% No.2 in directing investing platform market
Slide 10: Financial progress and capital discipline
Financial progress and capital discipline Stephanie Bruce, CFO 9 | abrdn plc
Slide 11: Financial strength underpins delivery of our strategy
Financial abrdn Investments Adviser Personal strength underpins Fee based revenue +6% +5% +30% +15% delivery of our strategy Cost/income ratio 6ppts better 5ppts better 7ppts better 15ppts better Adjusted operating +47% +36% +54% +>100% profit AUMA +1% +1% +14% +8% Net flows (ex. liquidity and LBG)
Slide 12: Arresting the decline in revenue
Arresting the Fee based revenue decline in +6% revenue £138m £1,515m £1,425m 2020 flows £23m First revenue increase in five years 2021 £5m (£62m) (£14m) Diminishing impact from net outflows – in year impact now (<0.5%) Yield stable at 27.3bps 2020 Net flows LBG Yield Performance Markets 2021 Positiv
Slide 13: Improving momentum in flows
Net flows Improving Institutional and Wholesale1 Investments Insurance2 momentum in £0bn £0bn flows (£11bn) (£4bn) Institutional and Wholesale - best net flows in 5 years1 (£22bn) (£8bn) 2019 2020 2021 2019 2020 2021 Investments Insurance - improved bulk purchase annuity and deal flows in H2 Adviser
Slide 14: Reshaping the cost base
Reshaping the Adjusted operating expenses cost base 11% lower run rate Creating capacity and flexibility to pay for Delivering efficiency which drives: £1,333m performance and £1,206m invest in the business • operating margin of 30% exiting 2023 £1,192m • ability to pay for performance and make furt
Slide 15: Strengthening dividend cover
Strengthening Adjusted capital generation dividend cover £333m £262m £366m £400m 2021 Adjusted £300m diluted 13.7p +4.9p Adjusted profit after tax EPS £269m £297m Adj. PAT +47% £200m Dividends received from £202m assocs./JVs and significant Adjusted listed investments diluted £100m capital 17.0p +5.
Slide 16: Disciplined management of capital
Disciplined Surplus regulatory capital management of +£0.6bn capital Sources Uses of capital of capital £0.2bn £0.1bn £0.9bn (£0.2bn) Realised value from stake sales (£0.3bn) £1.8bn and disposals of non-core assets (£0.3bn) £0.4bn (£0.2bn) First investment savings company £1.2bn to raise AT1 efficie
Slide 17: Disciplined approach to capital allocation
Disciplined approach to 2021 regulatory capital surplus £1.8bn - Impact of ii acquisition c£1.4bn Value of listed stakes1 capital allocation + Proceeds from Phoenix stake sale c£0.3bn = c£1.8bn Adjusted capital generation pro forma c£0.7bn Allocation of available capital resources c£2.5bn Hold Retur
Slide 18: Driving growth and shareholder returns
Driving growth and shareholder returns Stephen Bird, CEO 17 | abrdn plc
Slide 19: Driving growth and shareholder returns
Driving growth and shareholder returns Strong progress in first year of strategy to return business to long term sustainable client-led growth Disciplined approach to capital to drive growth and shareholder value Driving momentum into year two with clear leadership, focus and execution 18 | abrdn pl
Slide 20: Q&A
Q&A 19 | abrdn plc
Slide 21: Appendix
Appendix 20 | abrdn plc
Slide 22: Full year 2021 results
Full year 2021 results Fee Adj. Adj. Cost/ Adj. Fee based revenue operating operating income capital revenue yield expenses profit ratio generation £1,515m 27.3bps £1,192m £323m 79% £366m 1% 6ppts +6% +0.4bps +47% +£104m lower better Net flows Net flows1 AUMA ex. liquidity1 (£6.2bn) (£3.2bn) £542bn
Slide 23: Investments
Investments Fee Cost/ Adj. Fee based revenue income operating revenue1 yield ratio profit £1,231m 25.9bps 79% £253m 5ppts +5% +0.1bps +36% better Gross flows Net flows AUM ex. liquidity ex. liquidity2 £56.8bn (£7.6bn) £464bn +£4.6bn +£8.2bn +1% +9% +52% 22 | abrdn plc 1 Includes performance fees of
Slide 24: Adviser
Adviser Fee Cost/ Adj. Fee based revenue income operating revenue yield ratio profit £178m 24.9bps 58% £74m 7ppts +30% +2.6bps +54% better Gross flows Net flows AUA £9.1bn £3.9bn £76bn +£2.8bn +£2.0bn +14% +44% +105% 23 | abrdn plc
Slide 25: Personal
Personal Fee Cost/ Adj. Fee based revenue income operating revenue yield ratio profit £92m 61.0bps 91% £8m 15ppts +£13m +15% +2.5bps better +>100% Gross flows Net flows AUMA £1.7bn £0.6bn £14bn +£0.6bn +£0.6bn +8% +55% +>100% 24 | abrdn plc
Slide 26: Forward-looking statements
Forward-looking statements This document may contain certain ‘forward-looking statements’ with respect to the financial change and a transition to a low carbon economy (including the risk that the Group may not achieve condition, performance, financial results, strategies, targets, objectives, plans
Slide 27: abrdn plc registered office and contact
abrdn plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh, EH2 2LL www.abrdn.com © 2022 abrdn. All rights reserved. 26 | abrdn plc