St. James's Place Plc · LSE:STJ
St. James's Place — Investor Presentation (July 2024)
46 slides from St. James's Place's investor presentation, Jul 31, 2024
Slide 1: Investor Pack
S! Jamess Place inh 272
Slide 2: Contents
Contents Overview: Our business Our new Our financial Appendix business in detail business performance model and performance strategy 2
Slide 3: Overview: business model & strategy
Overview: busi model & 5 aa VX. SJP
Slide 4: Contents
4 Contents We’re a leading UK We’ve got a differentiated We’re well positioned to financial advice business advice-led business model benefit from long-term Established 1991 Providing holistic financial market growth Listed in the UK planning and wealth Favourable demographic management serv
Slide 5: Our business model
5 Our business model Benefits Advice Our clients: an end-to-end, connected proposition focused on great long-term outcomes Platform & Integrated client administration Our Partnership: superior support to build a great business over proposition the long-term Investments Our shareholders: long-term, s
Slide 6: Our strategy
6 Our strategy WHY WE ARE HERE To empower clients with invaluable advice to realise bolder ambitions WHAT WE WILL DO Differentiated Leading Performance Brilliant Client Adviser Focused Basics Proposition Offering Organisation Simplify and standardise Drive empowerment, Enhance our client Continue to
Slide 7: Brilliant Basics
7 Brilliant Basics What this means: We will simplify and standardise our operations, sharpening focus on delivering excellent client outcomes Initial priority areas 1 2 3 Leverage data to Drive awareness Drive standardisation provide enhanced of financial advice and simplification analytics, support
Slide 8: Differentiated Client Proposition
8 Differentiated Client Proposition What this means: We will enhance our client proposition, providing a quality offering across differing client segments Initial priority areas 1 2 3 Continue to broaden Develop our digital Enhance the our investment shelf channels, improving experience we provide t
Slide 9: Leading Adviser Offering
9 Leading Adviser Offering What this means: We will continue to be the best place to be a financial adviser in the UK, setting the standard for the future of financial advice Initial priority areas 1 2 3 Continue to refine our Continue to provide Evolve our Partnership Academy programme, a market le
Slide 10: Performance Focused Organisation
10 Performance Focused Organisation What this means: We will foster empowerment and accountability, evolving our culture and driving performance across our community Initial priority areas 1 2 3 Embed high performance Maintain a disciplined Optimise our cost base into our culture by driving approach
Slide 11: SJP – positioning for further success
SJP – positioning for further success Established Positioned to Sustainable Well-placed for Highly cash market leader benefit from and effective earnings growth generative, operating with structural market asset gathering as we deliver supporting growth scale advantage growth model scale operating a
Slide 12: The £3.3 trillion UK wealth management market: growing across all segments
The £3.3 trillion UK wealth management market: growing across all segments UK wealth market: by AUM segment UK wealth market: forecast development of AUM 2018-2030 2018-2030 Forecast Forecast £tn £tn 6 5 4 3 2 1 0 2018 2023 2030 2018 Outflows 2023 Outflows 2030 AUM AUM AUM Gross Asset Gross Asset Re
Slide 13: The market opportunity: rising demand for advice
The market opportunity: rising demand for advice Flexibility + Tax complexity Intergenerational complexity via ‘pension wealth freedom’ transfer Perfect environment for client-focused Decline of Growing UK advice business DB pensions savings gap 13
Slide 14: The value of advice
The value of advice Financial Investment Client net planning returns outcomes Trusted personal relationship 14
Slide 15: Our business in detail
Our business ity ai / SJP
Slide 16: The Partnership: fundamental to our business model
The Partnership: fundamental to our business model Clients 988,000+ Supporting clients The Partnership Building great 2,666 4,852 Financial businesses Partner businesses advisers Proposition £181.9 billion FUM Responsible business Data as at 30 June 2024 16
Slide 17: The Partnership: why do advisers join and stay with SJP?
The Partnership: why do advisers join and stay with SJP? Strong Great client Strong products outcomes commercial and proposition Attraction and relationship retention Flexible business Comprehensive development corporate support 17
Slide 18: The Partnership: sustaining long-term growth
The Partnership: sustaining long-term growth Strong adviser retention Value of A sustainable long-term Mix of Academy pipeline for and recruitment Partnerships channels growth in the Partnership Average age 46 (lower than IFA market average of 58) Data as at 30 June 2024 18
Slide 19: The Partnership: securing tomorrow through our Academy
The Partnership: securing tomorrow through our 319 New advisers in training at end-H1 Pipeline of quality advisers 133 Advisers delivered in H1 Supporting Partnership succession Academy 36 Average age 28% Female advisers Enables long-term client relationships; increases attractiveness to younger Con
Slide 20: The Partnership: advisers by age band
The Partnership: advisers by age band Existing advisers New advisers 5% 2% 11% 19% <35 <35 22% 35-45 35-45 45-55 45-55 20% 55-65 55-65 65+ 39% 65+ 25% 29% 28% 20 Data as at 30 June 2024
Slide 21: The Partnership
The Partnership 4,852 highly qualified advisers Penetration throughout the UK, the largest professional financial adviser community Great client 2,666 independently run Partner practices outcomes drive Entrepreneurial, motivated, nimble strong productivity Superior technical support and adviser qual
Slide 22: The Partnership: investing in our future
22 The Partnership: investing in our future New and Utilisation of improved Partner lending to systems support business and tech development Targeted, data-led More shared field management servicing team support of clients
Slide 23: Our clients: snapshot
Our clients: snapshot 988,000+ 56 2% 6% Clients Average age Overseas clients 1% 54%/46% No ‘typical’ client - all want trusted, personal advice 13% Male/female split 3% 4% 15% 25% 10% Data as at 30 June 2024 23
Slide 24: Our clients: by age band
Our clients: by age band Existing clients New clients 8% 6% 15% 23% 7% <30 17% <30 30-40 30-40 13% 40-50 40-50 50-60 16% 50-60 60-70 60-70 70+ 70+ 24% 25% 26% 20% Data as at 30 June 2024 24
Slide 25: Our investment proposition
Our investment proposition 32 Funds 3 Portfolio Ranges Diversified and complementary To meet different client needs building blocks TOP DOWN Growth Portfolios Equities Bonds Asset Allocation Active, systematic Sovereign Model portfolios that can be tailored Portfolio and regional and credit Construc
Slide 26: Responsible Business Framework
Responsible Business Enable financial wellbeing for our clients, our people and our Framework communities Financial wellbeing Investing our clients’ money responsibly Vision Purpose Culture Investing Climate responsibly change Take action on climate change Strategic enablers Community People Governa
Slide 27: Technology at SJP
Technology at SJP Bluedoor Salesforce Data & AI Modern back-office Central customer Rich data universe £’bn administration system relationship management Data and AI integrated Enabling scalability and (CRM) system ecosystem efficiency within SJP Hyper-personalised service delivery and e
Slide 28: Our new business
SJP Our new business pererames (| Va \\ C 7 —~
Slide 29: The Partnership
The Partnership The Partnership grew by a net 18 advisers 6,000 in H1 2024 to 4,852 advisers Strong pipeline for Academy enrolment 5,000 and experienced recruitment 4,000 319 new advisers in training in the 3,000 Academy at H1 2024 2,000 1,000 0 2017 2018 2019 2020 2021 2022 2023 H1 2024 Data as at
Slide 30: Net inflows: long-term track record
Net inflows: long-term track record £bn Challenging macroeconomic 3.5 and geopolitical environment in H1 2024, but our business was 3.0 very resilient: 2.5 Gross inflows of £8.5 billion Net inflows of £1.9 billion 2.0 Retention remained strong 1.5 at 94.6% excluding regular withdrawals and mat
Slide 31: Funds under management
Funds under management £bn >10% p.a. compound growth over the last 5, 10 and 15 years 200 180 160 140 120 100 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 Data as at 30 June 2024 31
Slide 32: Our financial performance
Our financia PeMPorMane T\ / f | | | LE \ \ | / Y // jf // i. WA J [- SJP
Slide 33: Robust 2024 H1 financials
Robust 2024 H1 financials 6p £205.2m £15.71 Interim dividend per £545.9m share EEV profit before Underlying cash EEV NAV per share, exceptional items, result, down 1% on up 11% since £32.9m down 26% on H1 H1 2023 31 December 2023 Interim share 2023 buyback Robust Solvency II position Data as at 30 J
Slide 34: Underlying post-tax cash result
Underlying post-tax cash result £m 250 Underlying post-tax cash result down 1% on 2023. Strong result driven by: -1% 200 − Rise in average mature FUM leading to 207.1 205.2 growth in net income from FUM − Maturing FUM contributing in excess of 150 £25 million to net income from FUM for the first tim
Slide 35: FUM in gestation
FUM in gestation £m Contribution of gestation FUM to the Cash result Gestation FUM of £49.5 billion will 350 gradually mature and begin to generate 300 annual product management charges over the next six years, with a high 250 degree of visibility 200 This will contribute c.£295 million per annum to
Slide 36: EEV NAV per share
EEV NAV per share £ 18 EEV NAV per share of £15.71, up 11% 16 since 31 December 2023 14 12 Excludes additional c.£255 10 million (or c.46 pence per share) 8 value of pensions business falling outside of current 6 contract boundaries 4 2 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 37: Shareholder returns
37 Shareholder returns Future shareholder distribution 2024 interim shareholder returns: guidance set at 50% of the Underlying Dividend of 6.00 pence per share cash result. Annual distributions expected to Share buyback of £32.9 million, comprise equivalent to 6.00 pence per share Fixed
Slide 38: Appendix
Appendix _ ae _/ | \ | \ |} - ) |e > | | | AZ YN | of of \ | \ \ J / / SJP
Slide 39: Our ESG commitments
Our ESG commitments Inclusion and diversity 40% female representation in senior roles by 2028 12% minority ethnic representation in our core employee base by 2028 10% minority ethnic representation across our Group Executive Committee and their direct reports by 2027 Net Zero1 by 2050 Climat
Slide 40: Investing our clients' money responsibly
40 Investing our clients’ money responsibly Responsible investment is embedded across our funds. Our 3-step process: 1. All fund managers must be PRI signatories 2. Monitor managers’ approach and work with them to improve 3. Use ESG data to monitor manager investments We’re a member of the Net-Z
Slide 41: Global investment management expertise
Global investment management expertise 41
Slide 42: Business Sale and Purchase (BSP) scheme
Business Sale and Purchase (BSP) scheme Largest scheme of its type in the country and a key element of our success over the past three decades What is the BSP scheme? Benefits of BSP scheme Clients Continuity of service and advice over time Allows growing Partner businesses to take on the businesses
Slide 43: Partner loans
Partner loans SJP facilitates loans to Partners to support purchases under our BSP scheme Loan book Funding source Security Proportion of loans are Outstanding loan book at Majority of loans provided to funded by SJP shareholders June 2024 in excess of established Partners from Group resources £900
Slide 44: Analyst following
44 Analyst following Autonomous - Andrew Crean Exane BNP Paribas – Greg Simpson Panmure Gordon – Rae Maile Barclays – Larissa Van Deventer HSBC – Steven Haywood Peel Hunt – Stuart Duncan Bank of America – Andrew Sinclair Jefferies – Julian Roberts RBC – Ben Bathurst Berenberg – Peter Richardson JP M
Slide 45: Costs of a full advice service: SJP v UK wealth management peers
Costs of a full advice service: SJP v UK wealth management peers The results to the assessment at 30 September 2023: 3.2% 2.1% 2.2% The figures shown have been produced by Ernst & Young LLP (‘EY’), an external consultancy. They show the Reduction in Yield e ach year over a period of 10 years for a £
Slide 46: 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 www.sjp.co.uk/shareholders
St. James's Place — Investor Presentation (July 2024) on 6ix