St. James's Place Plc · LSE:STJ
St. James's Place — Investor Presentation (March 2022)
48 slides from St. James's Place's investor presentation, Mar 21, 2022
Slide 1: Investor Pack
St James's Place Invest pale yy
Slide 2: Contents
Contents 1. Overview: business model and strategy 2. Our business in detail 3. Our new business performance 4. Our financial performance 5. Appendix 2
Slide 3: Overview: business model & strategy
Overview: b model & $ A ns ni sJP
Slide 4: St. James's Place overview
St. James's Place overview 01 02 03 Leading UK Wealth Differentiated advice-led Well positioned to benefit Management Company business model from long-term market ♦ Established 1991 ♦ Dedicated advice led growth ♦ UK listed with market cap distribution – The ♦ Favourable demographic of c.£7 billion
Slide 5: The market opportunity: rising retail wealth
The market opportunity: rising retail wealth UK aggregate wealth by age cohort 30% 12 million 27% 25% 24% 23% ‘mass affluent’ and high net worth 20% individuals… 15% …controlling £3.1tn of liquid assets 10% 10% 10% 5% 3% 3% 0% 0% 16 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85 and over 87
Slide 6: The value of advice
The value of advice Trusted Great client Financial Investment personal planning returns outcomes relationship 6
Slide 7: The market opportunity: rising demand for advice
The market opportunity: rising demand for advice Flexibility + complexity via ‘pension freedom’ Decline of Growing UK DB pensions savings gap Perfect Tax environment for Intergenerational complexity client-focused Wealth Transfer advice business 7
Slide 8: The market opportunity: undersupply of advice
The market opportunity: undersupply of advice Number of UK retail investment The UK advice gap is large 50,000 advisers 45,000 Only a quarter of UK adults currently 40,000 seek advice 35,000 30,000 3.7 million individuals with £50k+ 25,000 of investable assets, are open to 20,000 advice but currentl
Slide 9: Our business model
Our business model Vertical integration Benefits Our clients: an end-to-end, connected Advice proposition focused on great long-term outcomes + Our Partnership: superior support Platform & Administration to build a great business over the long-term + Our shareholders: long-term, sustainable Investme
Slide 10: Our 2025 strategy
Our 2025 strategy Where we’re going Our vision Our 2025 goals ‘To support the UK's leading Financial c.10% annual 95% annual 5% growth £200 billion Advisers with the best technology, growth in retention in controllable FUM gross inflows of client FUM* expenses best operations and best proposition fo
Slide 11: Our business priorities
Our business priorities Building Delivering value to Our culture and community clients through being a leading our IMA responsible business Building and Making it easier Continued protecting to do business financial strength our brand and reputation 11
Slide 12: Our business in detail
Our business in 02
Slide 13: The Partnership: fundamental to our business model
The Partnership: fundamental to our business model ♦ Supporting clients ♦ Building great businesses Clients 868,000+ The Partnership 2,562 Partner businesses 4,556 Financial advisers Proposition £154 billion FUM Tech 13
Slide 14: The Partnership: why do advisers join and stay with SJP?
The Partnership: why do advisers join and stay with SJP? Great client outcomes + Flexible business development + Strong commercial relationship = + Comprehensive corporate support + Attraction and retention Strong products and proposition 14
Slide 15: The Partnership: sustaining long-term growth
The Partnership: sustaining long-term growth Value of long-term Partnerships + Average age 46 (lower than market) + Strong adviser retention = + Mix of Academy and recruitment channels A sustainable pipeline for growth in the Partnership 15
Slide 16: The Partnership: securing tomorrow through our Academy
The Partnership: securing tomorrow through our Academy Average age of 844 Academy refreshed in 60% 350 8%+ 57% 34 2021 Partners and from non- new advisers of new client referred Advisers financial in training at investments by the delivered backgrounds end-2021 in 2021 Partnership 16
Slide 17: The Partnership: advisers by age band
The Partnership: advisers by age band Existing advisers New advisers 3% 1% <35 <35 15% 35-45 11% 35-45 20% 45-55 45-55 55-65 37% 55-65 65+ 21% 65+ 29% 33% 30% 17
Slide 18: The Partnership: driving productivity
The Partnership: driving productivity Great client outcomes drive strong productivity (40% of new business through referrals) Targeted Coaching and growth and Business leadership development consultancy development support 18
Slide 19: The Partnership: investing in our future
The Partnership: investing in our future Targeted, Utilisation of New and Partner lending data-led More shared improved to support field servicing systems business management of clients and tech development team support 19
Slide 20: Our clients: snapshot
Our clients: snapshot Overseas clients: 3% ♦ 868,000+ clients ♦ 53%/47% male/female split 5% ♦ Average age 56 ♦ No ‘typical’ client - all want trusted, 1% personal advice 13% 3% 4% 15% 15% 25% 10% Geographic distribution of client FUM as at 31/12/21 20
Slide 21: Our clients: by age band
Our clients: by age band Existing clients New clients 6% <30 8% <30 6% 19% 23% 30-40 30-40 16% 40-50 40-50 16% 50-60 50-60 13% 60-70 60-70 70+ 70+ 22% 26% 17% 17% 21
Slide 22: Our investment proposition
Our investment proposition Stockbroking £154bn Discretionary Fund Management (DFM) Investment Management Approach (IMA) 13,000+ Plan Design Review Select Monitor Change 22
Slide 23: Our investment proposition: driving performance
Our investment proposition: driving performance 23
Slide 24: Our investment proposition: our seven beliefs
Our investment proposition: our seven beliefs 24
Slide 25: Responsible Business
Responsible Business Enable financial wellbeing for our clients, our people and our communities Financial Wellbeing Lead the conversation on investing responsibly Vision Purpose Culture Investing Climate Responsibly Change Take action on climate change Strategic Enablers Community People Governance
Slide 26: Leading the conversation on investing responsibly
Leading the conversation on investing responsibly ♦ Responsible investment as standard − All our managers are UN PRI signatories − RI key to selection and monitoring process across all funds and strategies − Focus on stewardship and engagement ♦ Tailored and bespoke RI solutions also available for c
Slide 27: Technology at SJP
Technology at SJP Bluedoor Salesforce Data &AI Enabling scalability and efficiency Hyper-personalised service delivery Leading to a data and AI integrated within SJP and efficiency ecosystem Next Generation Client Experience (NGCX) Delivering growth Scalability Efficiency Resilience Reduce complexit
Slide 28: Our new business performance
Our new business pesporuance ae sJP
Slide 29: The Partnership
The Partnership 5,000 ♦ The Partnership grew 5% 4,500 in 2021 to 4,556 advisers 4,000 ♦ Strong pipeline for Academy enrolment 3,500 and experienced recruitment 3,000 ♦ 350 new advisers in training in the 2,500 Academy at end-21 2,000 1,500 1,000 500 0 2014 2015 2016 2018 2019 2020 2021 29
Slide 30: Gross inflows: long-term track record
Gross inflows: long-term track record £20bn ♦ A record year for new business in 2021 £18bn − Gross inflows of £18.2 billion, up 27% £16bn − Strong underlying performance £14bn − Also benefiting from excess savings and a more favourable operating environment £12bn £10bn £8bn £6bn £4bn £2bn £0bn 2008
Slide 31: Building flows to 2025
Building flows to 2025 £bn Gross inflows: progress ♦ Growth in new business will not be linear 25 against our 2025 plan ♦ There will naturally be variations in growth rates from quarter to quarter and year 20 to year ♦ Great start to 2025 ambitions 15 10 5 0 2021 2022 2023 2024 2025 *Based on 2022 c
Slide 32: Net inflows: long-term track record
Net inflows: long-term track record £12bn ♦ Record year for net inflows, up 34% to £10bn £11.0 billion, driven by: − Strong new business performance £8bn − Exceptional retention of client investments: 96% excluding regular withdrawals and £6bn maturities ♦ Maintaining our track record of net £4bn in
Slide 33: Funds under management
Funds under management £bn >15% p.a. compound growth over the last 5, 10 and 15 years 180 160 140 120 100 80 60 40 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 33
Slide 34: Our financial performance
Our financia Nance ((\\A sJP
Slide 35: Strong 2021 financials
Strong 2021 financials Underlying cash result £401.2 million, up 52% EEV operating profit £1,545.4 million, up 68% EEV NAV per share £16.57, up 14% Robust Solvency II position Full year dividend 51.96 pence per share, up 35% 35
Slide 36: Underlying cash result
Underlying cash result £m ♦ Underlying cash result up 52% to £401.2 million, driven by: 450 +52% − Growth in FUM in both 2020 and 2021 leading 400 401.2 to growth in net income from FUM 350 − Contribution of over £40 million to 2021 net 300 income from FUM due to maturing FUM 250 264.7 − Strength of
Slide 37: FUM in gestation
FUM in gestation £m Contribution of gestation FUM to the Cash result ♦ Gestation balance now stands at 450 £49.3 billion 400 ♦ This will contribute over £390 million per annum to the Cash result from 350 2027 onwards when it all matures 300 − Using simple modelling which assumes for 250 example that
Slide 38: EEV NAV per share
EEV NAV per share ♦ EEV NAV per share of £16.57, up 14% £ over past 12 months 16 ♦ Excludes additional c.£395 million 14 (or c. 73 pence per share) value 12 of pensions business falling outside of current contract boundaries 10 8 6 4 2 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 38
Slide 39: Dividends
Dividends ♦ Full year dividends set in line with policy at 70% of the Underlying cash result ♦ Full year dividend of 51.96 pence per share, growth of 35% ♦ Proposal final dividend of 40.41 pence per share 39
Slide 40: Longer-term outlook
Longer-term outlook ♦ Demand for trusted face to face financial advice remains as strong as ever ♦ St. James’s Place ideally placed − Academy − Proven investment approach − Modern and scalable infrastructure − Unique culture and refreshed brand ♦ Remain confident of achieving our 2025 ambitions and
Slide 41: Appendix
Appendix sJP
Slide 42: Net inflows: long-term track record
Net inflows: long-term track record 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 43: Our Net Zero commitments
Our Net Zero commitments 1. Climate positive in our operations by 2025 2. Net Zero throughout our supply chain by 2035 3. Support our Partnership becoming Net Zero by 2035 4. Net Zero in our investments by 2050 43
Slide 44: SJP Asia: the market opportunity
SJP Asia: the market opportunity Singapore and Hong Kong 4.6m people with US $100,000 – US $1m to invest 300,000 people with US $1m – US $30m to invest = US $2tn total asset pool 44
Slide 45: SJP Asia: our proposition
SJP Asia: our proposition WHO? Expats and high net worth Singaporean and Hong Kong Nationals WHAT? Wealth extraction Long-term capital International family for entrepreneurial preservation wealth structuring families and investment WHY SJP? Trusted brand, long-term Increasingly Asia-centric Joint UK
Slide 46: SJP Asia: the 30-year-old disruptor
SJP Asia: the 30-year-old disruptor A clear plan to create long-term value Positioned to target expats and HNW individuals Building 100 great Asia Partner businesses Long-term, advice-led proposition Delivering cash break even by 2025 46
Slide 47: Analyst following
Analyst following Autonomous Andrew Crean KBW Charles Beeching Barclays Larissa van Deventer Mediobanca Fahad Changazi Bank of America Andrew Sinclair Morgan Stanley Louise Miles Berenberg Adam Barrass Numis David McCann Citi Andrew Baker Panmure Gordon Rae Maile Deutsche Bank Rhea Shah Peel Hunt St
Slide 48: Investor relations
Investor relations Craig Gentle Hugh Taylor Chief Financial Officer Investor Relations Director Email: craig.gentle@sjp.co.uk Email: hugh.taylor@sjp.co.uk Tel: +44 207 514 1963 Tel: +44 207 514 1963 www.sjp.co.uk/shareholders 48
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