Slide 1: Half year results 2018
Standard Life Aberdeen plc Half year results 2018 7 August 2018
Slide 2: Forward-looking statements disclaimer
This presentation may contain certain “forward-looking statements” with respect to the financial condition, performance, results, strategy, objectives, plans, goals and expectations of Standard Life Aberdeen plc (“Standard Life Aberdeen”) and its affiliates. These forward-looking statements can be i
Slide 3: Strong business with a clear focus on our areas of strength and long-term growth
Strong business with a clear focus on our areas of strength and long-term growth Transforming our business to achieve success in a changing market landscape A tough market and an industry in transition Well positioned to respond to and capitalise on these trends • Growth of passive investing and ETF
Slide 4: Financial highlights
Financial highlights H1 2017 H2 2017 H1 2018 Adjusted profit before tax (£m) 521 518 478 Adjusted diluted earnings per share (p) 15.3 13.6 12.8 Interim dividend Continuing per share (p) operations: 7.00 N/A 7.30 Continuing operations: Adjusted profit before tax (£m) 355 305 311 Adjusted diluted earn
Slide 5: Assets under management and administration
Assets under management and administration Net flows remain a challenge in difficult market conditions • ASI net outflows reflect movement on long Assets under management and administration established products and natural run-off from insurance business: Net outflows: (£16.6bn) ASI net flows £626.5
Slide 6: Diverse gross inflows well balanced across all asset classes
Diverse gross inflows well balanced across all asset classes Redemptions focused in specific strategies and insurance client books in natural run-off H1 2018 annualised net outflows of 5.3% of opening AUMA Gross inflows returning to pre-merger levels £60bn £55bn £40bn £38.0bn £38.0bn £36.0bn £20bn £
Slide 7: Sustained growth in retail platforms and financial advice capability
Sustained growth in retail platforms and financial advice capability Highly scalable through operational leverage and a clear path to growing profitability Strong growth in AUA and flows Retail platform profitability (Wrap, Elevate and Parmenion) £80bn H1 20171 H1 20181 Change £61.4bn1 £58.4bn1 Fee
Slide 8: Half year results 2018
Standard Life Aberdeen
Slide 9: Adjusted profit from continuing operations up on H2 2017
Adjusted profit from continuing operations up on H2 2017 Lower revenues more than offset by reduction in expenses and growth from associates and JV Adjusted profit before tax FY 2017 H1 2017 H2 2017 H1 2018 £m £m £m £m Adjusted operating income 2,099 1,041 1,058 966 Adjusted operating expenses (1,55
Slide 10: Adjusted profit after tax and adjusted EPS
Adjusted profit after tax and adjusted EPS Future EPS will benefit from share of profit from Phoenix and impact of capital return FY 2017 H1 2017 H2 2017 H1 2018 £m £m £m £m Total adjusted profit before tax 1,039 521 518 478 Total tax on adjusted profit (175) (63) (112) (95) Total adjusted profit af
Slide 11: Analysis of adjusted operating income and revenue margins
Analysis of adjusted operating income and revenue margins Total Growth adjustedflows operating income and revenue margins • Modest reduction in revenue margins H1 H2 H1 H1 H2 H1 principally because of mix effects 2017 2017 2018 2017 2017 2018 £m £m £m bps1 bps1 bps1 • Stable margins across the strat
Slide 12: Adjusted operating expenses
Adjusted operating expenses Driving down the cost/income ratio to 60% over the medium term • Improvement in cost/income ratio to 69.4% (FY 2017: 70.6%) • Annualised cost efficiencies of at least £350m1 to be achieved by end of 2020: • £135m already implemented • H1 2018 has benefited by c£40m (i.e.
Slide 13: Interim dividend up 4.3% to 7.30p
Interim dividend up 4.3% to 7.30p Unbroken track record of delivering progressive dividends Dividend per share (p) Final dividend Interim dividend 25p 21.30 19.82 14.30 18.36 13.35 17.03 12.34 15.80 14.70 11.43 13.80 10.58 13.00 9.80 11.77 12.24 9.20 11.50 8.65 10.80 8.09 7.70 7.70 7.20 7.00 7.30 6.
Slide 14: Half year results 2018
Standard Life Aberdeen
Slide 15: The record outperformance of 'Growth' vs. 'Value'
The record outperformance of ‘Growth’ vs. ‘Value’ ‘Growth’ has outperformed ‘Value’ for 11.5 years since December 2006 MSCI World Value vs. Growth 185 170 155 140 125 110 95 World Value vs. Growth Growth outperforming 14
Slide 16: Robust investment performance across most asset classes
Robust investment performance across most asset classes Focused on improving performance in GARS, EM and Global Equities 1 year 3 years 5 years Robust Alternatives; UK, Japanese and Smaller Companies performance equities; Quantitative; Credit, EMD and Government AUM above benchmark1 61% 53% 66% acro
Slide 17: "New active" Global net inflows
Positioned to benefit from global demand for “new active” investment capabilities Through existing strength in “new active” capabilities and ongoing investment in innovation 2016-2020 Global estimated net flows1 Positioned to benefit from strong demand for “new active” investment capabilities 19% Al
Slide 18: A track record of innovation in "new active" investment solutions
A track record of innovation in “new active” investment solutions Designed to deliver specific client outcomes Total AUM Accumulation Preservation Income Selected examples Selected examples Selected examples Private Equity Diversified GTAA Listed Private <1 year Strategies Equity Impact Capital Fund
Slide 19: Transforming our business
Transforming our business Focus on financial discipline to deliver £350m of annual cost efficiencies • Merger integration progressing well: • Investment professionals and distribution teams now fully integrated and focused on client outcomes and increasing distribution activity • All of our people n
Slide 20: Ensuring efficient allocation of capital with acceleration of share buyback programme
Ensuring efficient allocation of capital with acceleration of share buyback programme Track record of reshaping our balance sheet and returning capital to shareholders Sale1 of insurance business completes transformation to a capital light investment company allowing return1 of up to £1.75bn of capi
Slide 21: One of the strongest balance sheets in the industry
One of the strongest balance sheets in the industry With substantial listed investments and strong net cash resources • Future strategic listed investment in Phoenix worth £1.0bn1: • c19.99% stake • Source of earnings and dividends as well as current and future AUM • Indian listed investments worth
Slide 22: Strong business with a clear focus on our areas of strength and long-term growth
Strong business with a clear focus on our areas of strength and long-term growth Continued progress towards achieving our world-class ambitions • Completed integration across our client and consultant facing investment and distribution teams – now one of the largest in the industry and building mome
Slide 23: Questions
Standard Life Aberdeen
Slide 24: Half year results 2018
Standard Life Aberdeen plc Half year results 2018 7 August 2018