St. James's Place Plc · LSE:STJ
St. James's Place — Investor Day (May 2021)
76 slides from St. James's Place's investor day presentation, May 26, 2021
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY ST. JAMES’S PLACE – 26 MAY 2021
Slide 2: Introduction: our journey
Introduction: our journey CAPITAL MARKETS DAY Fn . pe. =
Slide 3: Our 2025 Strategy: A Reminder
OUR 2025 STRATEGY: A REMINDER Where we’re going Our 2025 goals Our vision c.10% annual 5% growth £200 billion growth in in controllable FUM ‘To support the UK's leading Financial Advisers gross inflows expenses with the best technology, best operations and best proposition for them and their clients
Slide 4: A Long-Term Business
A LONG-TERM BUSINESS Supporting Building Making long-term long-term long-term client relationships investments outcomes
Slide 5: Our Business Model
OUR BUSINESS MODEL Utopia Life – founding principles 01 Long-term mindset 02 Distribution via the Partnership 03 Holistic products and services
Slide 6: Our Business Model: vertical integration
OUR BUSINESS MODEL Vertical integration Benefits Our clients: an end-to-end, connected Advice proposition focused on great outcomes + Our Partnership: superior support Platform & Administration to build a great business + Our shareholders: long-term, sustainable Investments growth in funds under man
Slide 7: Becoming a Leading Responsible Business
BECOMING A LEADING RESPONSIBLE BUSINESS
Slide 8: Becoming a Leading Responsible Business
BECOMING A LEADING RESPONSIBLE BUSINESS ADVISERS INVESTMENTS CLIENTS By providing financial advice By investing responsibly By educating and supporting EMPLOYEES By caring for their well-being and development and inclusion and diversity programmes OPERATIONS & COMMUNITY ENGAGEMENT Sustainable The Ch
Slide 9: Becoming a Leading Responsible Business
BECOMING A LEADING RESPONSIBLE BUSINESS
Slide 10: Becoming a Leading Responsible Business
BECOMING A LEADING RESPONSIBLE BUSINESS
Slide 11: World-Class Technology: Bluedoor
WORLD-CLASS TECHNOLOGY Bluedoor
Slide 12: Our 2025 Strategy: Our Growth Opportunity
OUR 2025 STRATEGY: OUR GROWTH OPPORTUNITY 11 million ‘mass affluent’ Supporting Partner businesses to grow 10% individuals growth in gross Scaling the Partnership inflows
Slide 13: Asia
I I Aa ian Ve «ae ASIA
Slide 14: Coming Up
COMING UP Developing the Partnership 01 to deliver sustainable growth Peter Edwards Securing success by investing 02 in technology Ian MacKenzie Our Investment Proposition: 03 supporting great outcomes for Partners and clients Rob Gardner 04 St. James's Place Asia: building for the long term Iain Ra
Slide 15: Capital Markets Day
CAPITAL MARKETS DAY ST. JAMES’S PLACE – 26 MAY 2021
Slide 16: Capital Markets Day
CAPITAL MARKETS DAY ST. JAMES’S PLACE – 26 MAY 2021
Slide 17: Developing the Partnership to deliver sustainable growth
Developing the Partnership to deliver sustainable growth
Slide 18: What Is the Partnership?
WHAT IS THE PARTNERSHIP? 800,000+ clients Clients 4,300 Financial The Advisers Partnership £135 billion FUM St. James's Place
Slide 19: Why Do Partners & Advisers Join and Stay with SJP?
WHY DO PARTNERS & ADVISERS JOIN AND STAY WITH SJP? Great client outcomes + Flexible business development + Strong commercial relationship = + Attraction Comprehensive corporate support and retention + Strong products and proposition
Slide 20: The Academy: Securing Tomorrow
The Academy: securing tomorrow 681 60% 8%+ Partners and from non- of new client Advisers financial investments delivered backgrounds in 2020 Average Academy 400 57% age of refreshed in referred 34 2021 new members from 2022 by the Partnership
Slide 21: Creating Sustainable Long-Term Growth
CREATING SUSTAINABLE LONG-TERM GROWTH Value of long-term Partnerships + Average age 46 (lower than market) + = Strong adviser retention + A sustainable pipeline Mix of Academy and recruitment channels for growth in the Partnership
Slide 22: Growing the Partnership: Quality Not Quantity
GROWING THE PARTNERSHIP: QUALITY NOT QUANTITY Delivering continued growth in the Partnership Maintain focus on high quality recruitment Growing contribution from the Academy Delivering L&D: ongoing support to succeed FMT: focus on growth and retention
Slide 23: Evolving the FMT Model
EVOLVING THE FMT MODEL New Establishment businesses Emerging Stability businesses Adaptation Established Growth Efficiency businesses Succession Business Business Business development optimisation change
Slide 24: Increasing Productivity
INCREASING PRODUCTIVITY Great client outcomes drive strong productivity (40% of new business through referrals) Targeted Coaching and growth and Business leadership development consultancy development support
Slide 25: Pivoting Through the Pandemic
PIVOTING THROUGH THE PANDEMIC We have significantly enhanced Partners’ ability to interact with clients remotely, more responsively, more accurately and more quickly.
Slide 26: Investing in Our Future
Investing in our future Utilisation of New and Partner lending Targeted, More shared improved to support data-led servicing systems business FMT support of clients and tech development
Slide 27: Delivering 10% New Business Growth p.a.
DELIVERING 10% NEW BUSINESS GROWTH P.A. Accelerated Accelerated new new joiner joiner Partnership growth Targeted Target Partner Partnersupport support productivity Enhanced technology Client Service Excellence utilisation
Slide 28: Strong Partnership, Strong Growth
STRONG PARTNERSHIP, STRONG GROWTH Sustained new business growth, strong retention
Slide 29: Our Investment Proposition: supporting great outcomes for Partners and clients
Our Investment Proposition: supporting great outcomes for Partners and clients
Slide 30: Our Investment Proposition
Our Investment Proposition Stockbroking O- Discretionary Fund 9 Management (DFM) Investment Management O. Approach (IMA)
Slide 31: Our Investment Proposition
Our Investment Proposition Stockbroking O Investment Management O Approach (IMA)
Slide 32: Our Investment Proposition
Our Investment Proposition Stockbroking O- o Bespoke o Tailored Discretionary Fund ................ Management (DFM) Investment Management O Approach (IMA)
Slide 33: Our Investment Proposition
Our Investment Proposition Stockbroking O Investment Management O Approach (IMA) o Solutions @ £135bn Group FUM. portfolios Multi-asset Investment See e © Pe 3h) building blocks/funds 13,000+ individual stocks and bonds
Slide 34: Our Investment Proposition: managed funds performance
Our Investment Proposition Managed funds performance (2011-2021) Inflation
Slide 35: Our Investment Proposition
Our Investment Proposition
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Slide 37: People & Team
People & Team Quest for the best
Slide 38: Our recipe for long-term performance
2 s oS s 8, “1, 7 Our recipe for long-term performance s . io} oO 8 %
Slide 39: Data, Tech & Insights
Data, Tech & Insights Right tools, right decisions
Slide 40: Our recipe for long-term performance
<f s Py gv x Our recipe for long-term Pina, S = performance — o, ey 3 % %,
Slide 41: Investment & Governance
Investment & Governance How we make decisions
Slide 42: ie) Oo
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Slide 43: Our Investment Beliefs
Our Investment Beliefs il Great client outcomes 2. Asset allocation Zi Responsible investment Disciplined Diversification research Active management Understand the risks
Slide 44: Where can we invest our money when interest rates are so low?
Where can we invest our money am when interest rates are so low? us — Japan — UK — Meet the Taylors ——
Slide 45: 1. Great client outcomes
O 1. Great client outcomes Decumulation: “The nastiest, hardest problem in finance.” William Sharpe, US economist and Nobel Laureate — Meet the Taylors ——
Slide 46: 2. Asset allocation
O 2. Asset allocation — Meet the Taylors ——
Slide 47: 3. Diversification
o 3. Diversification ces Se 5) © Equities and bonds Equity building blocks 75% 1 Growth — Meet the Taylors ——
Slide 48: 4. Active management
o 4. Active management SJP Global Value Fund performance (Sep 2020 - May 2021) sr —.sc1 ‘Sep20 Jan21 May 24 — Meet the Taylors ——
Slide 49: 5. Understand the risks
5. Understand the risks o Life Inflation (%) expectancy (years) Income (£) — Meet the Taylors ——
Slide 50: 6. Disciplined research
6. Disciplined research o = kb & BL 700+ 100+ 15GB research data feeds data/hr meetings in 2020 — Meet the Taylors ——
Slide 51: 7. Responsible investment
7. Responsible investment o — Meet the Taylors ——
Slide 52: Maximising Future Opportunities
Maximising Future Opportunities
Slide 53: Maximising Future Opportunities
Maximising Future Opportunities
Slide 54: Securing success by investing in digital
Securing success by investing in digital
Slide 55: Our 2025 Strategy: Underpinned by Tech
OUR 2025 STRATEGY: UNDERPINNED BY TECH Clients Partners and Advisers Proposition
Slide 56: Our Vision: Creating a NGCX
OUR VISION: CREATING A NGCX Stronger outcomes for everyone Clients: hyper-personalisation, exceptional experience Partnership: increased efficiency, scalability Group: supporting growth, operational leverage
Slide 57: Advisers and Technology
ADVISERS AND TECHNOLOGY Mass affluent HNW UHNW I interacted only I interacted mostly I interacted with I mostly used I interacted only with people with people, but I also people and used technology, but also with technology used technology technology equally interacted with people
Slide 58: Bluedoor and Salesforce
Bluedoor our system of record Clients Salesforce our system of engagement Partners and Advisers Proposition
Slide 59: Long-Term Relationships
LONG-TERM RELATIONSHIPS st os PLACE sshic salesforce intellect @OB Design for Digital AUTOMATION &> sii
Slide 60: Bluedoor: World-Class Technology
WORLD-CLASS TECHNOLOGY Bluedoor Enabling scalability and Hyper-personalised service efficiency delivery and efficiency
Slide 61: Leveraging World-Class Technology
LEVERAGING WORLD-CLASS TECHNOLOGY Delivering efficiency Bluedoor Delivering operational leverage Underpinning 5% per annum expense guidance
Slide 62: SJP Digital Today
SJP DIGITAL TODAY Actual performance Up-to-date valuations Asset allocation Personalised
Slide 63: Simplifying Our Technology Estate
SIMPLIFYING OUR TECHNOLOGY ESTATE 26 smaller systems will be decommissioned Simplified tech architecture 100+ processes will be automated by end 2021 70 bots already running
Slide 64: Coming Next: Our Data Advantage
COMING NEXT: OUR DATA ADVANTAGE Clients Partners Data and Advisers Proposition
Slide 65: An Integrated Ecosystem
AN INTEGRATED ECOSYSTEM Clients Partners Data Data and & AI Advisers Proposition
Slide 66: Making It Easier to Do Business with SJP
MAKING IT EASIER TO DO BUSINESS WITH SJP Paper-heavy to digital first NGCX: launching Q1 2022 Anchored in operational excellence
Slide 67: Sustainable Success
SUSTAINABLE SUCCESS BLUEDOOR SALESFORCE DATA & AI Enabling scalability and efficiency within SJP Hyper-personalised service delivery and efficiency Leading to a data and AI integrated ecosystem Next Generation Client Experience (NGCX) Delivering growth Scalability Efficiency Resilience Reduce comple
Slide 68: SJP Asia: building for the long term
SJP Asia: building for the long term
Slide 69: SJP Asia – Key Takeaways
SJP ASIA – KEY TAKEAWAYS We plan to grow gross inflows 01 25% per annum We plan to reach cash breakeven 02 by 2025 We are committed to creating 03 long-term value in attractive growth markets
Slide 70: History Lesson: Strong Building Blocks
HISTORY LESSON: STRONG BUILDING BLOCKS We have invested to... SJP Asia in numbers Establish offices in Hong Kong, Singapore and Shanghai SJP FUM 2014 Q1 1.3bn Build a strong management team 2021 Clients 2014 4,000 Launch a new life company in Hong Kong 2020 12,000 Launch a branch of Dublin LifeCo in
Slide 71: Now and Next: 2021 to 2025
NOW AND NEXT: 2021 TO 2025 Today 2025 27,000 clients 12,000 clients £185,000 average investment £110,000 average investment £5bn FUM £1.3bn FUM Cash breakeven
Slide 72: The Market Opportunity
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
Slide 73: Our Proposition in Asia
OUR PROPOSITION IN ASIA WHO? Expats and high net worth Singaporean and Hong Kong Nationals WHAT? International Wealth extraction Long-term capital family wealth for entrepreneurial preservation structuring families and investment WHY SJP? Trusted brand, long-term Joint UK/Asia focus and Increasingly
Slide 74: Partnership & Distribution
PARTNERSHIP & DISTRIBUTION Building 100 great Asia Partner businesses The powerhouse of Proposition SJP in Asia is and will always be our Partners Asia and Advisers. Partnership Culture Client service
Slide 75: SJP in Asia: The 30-Year-Old Disruptor
SJP IN 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
Slide 76: Capital Markets Day
CAPITAL MARKETS DAY ST. JAMES’S PLACE – 26 MAY 2021