Slide 1: Full year results 2019
‘Toge we invest for a better future ther Standard Life Aberdeen Full year results 2019
Slide 2: Forward-looking statements
Forward-looking statements This document may contain certain ‘forward-looking statements’ with respect to the financial condition, performance, results, strategy, targets, objectives, plans, goals and expectations of the Company and its affiliates. These forward-looking statements can be identified
Slide 3: Transforming today, investing for tomorrow
Fullyear results 2019 ‘Transforming today, investing for tomorrow Keith Skeoch Chief Executive Standard Life Aberdeen
Slide 4: Transforming today, investing for tomorrow
Transforming today, investing for tomorrow Transforming today Investing for tomorrow Marked improvement in investment performance and Investing in the business and focus on diversifying encouraging gross and net flow momentum in H2 2019 revenue growth Challenging year for industry creating revenue h
Slide 5: Financial results
Fullyear results 2019 Financial results Stephanie Bruce Chief Financial Officer Standard Life Aberdeen
Slide 6: Profitability from continuing operations
Profitability from continuing operations FY 2018 H1 2019 H2 2019 FY 2019 YoY £m £m £m £m change Fee based revenue 1,868 815 819 1,634 -13% Adjusted operating expenses (1,395) (673) (660) (1,333) -4% Adjusted operating profit 473 142 159 301 Capital management (9) 22 15 37 Asset management associates
Slide 7: Reduction in revenue reflects impact of net outflows
Reduction in revenue reflects impact of net outflows in Institutional and Wholesale and mix of asset class demand Fee based revenue 2018 2019 • Reduction in revenue in Institutional and Wholesale: £m £m • Net outflows concentrated in this channel, particularly Institutional and Wholesale 1,253 1,011
Slide 8: Fee revenue yield
Fee revenue yield Fee revenue yield FY 2018 FY 2019 H1 2019 H2 2019 • Movement in total yield largely reflects mix of client bps bps bps bps investment demand Institutional and Wholesale 47.9 42.8 43.4 42.1 • Yield on different asset classes not significantly Strategic insurance partners 13.1 12.2 1
Slide 9: Institutional and Wholesale gross inflows and net flows
Institutional and Wholesale 2019 progress Marked increase in gross inflows Improvement in rate of net outflows £50bn £0bn £47.3bn (£6.0bn) £37.7bn Gross inflows (£15.5bn) Net flows £28.0bn (£21.5bn) £19.3bn (£25.9bn) £16.3bn FY 2018 FY 2018 (£39.8bn) £0bn FY 2019 £50bn FY 2018 FY 2019 H2 2018 H1 201
Slide 10: Platforms and Wealth net inflows
Platforms and Wealth 2019 progress Continued growth in assets Encouraging level of net inflows sustained £90bn £10bn £86.0bn £79.9bn £69.1bn £7.0bn Net inflows AUMA1 £5.0bn £4.6bn Virgin Money £3.5bn £2.0bn £1.8bn £0bn £0bn FY 2018 H1 2019 FY 2019 FY 2018 FY 2019 H2 2018 H1 2019 H2 2019 • 24% YoY in
Slide 11: Associates and JVs
Associates and JVs 2019 share of Listed value adjusted Holding1 of holding2 profit • ASI is the asset manager of choice for Phoenix (£146bn of AUM) 19.97% £1.0bn £136m • Potential for new asset management mandates from further Phoenix acquisitions • Provides Platforms and Wealth with access to up to
Slide 12: Increased realisation of synergies and efficiencies in operating expenses
Increased realisation of synergies and efficiencies in operating expenses Adjusted operating expenses improved by 4% £1,600m £1,395m +£68m +£15m +£16m +£15m £1,333m (£114m) Non-staff (£62m) Non-staff costs costs £722m £687m Staff Staff costs costs £673m £646m £0m 2018 Synergies Other Inflation/ FX A
Slide 13: Continue with progress on improving operating leverage
Continue with progress on improving operating leverage Run-rate of £0m £283m £350m £400m £400m synergies (incl. synergies realised through P&L) £1,600m £1,551m +£13m +£24m £1,333m +£85m +£12m Cost base (£234m) £1,199m (£118m) • Synergies – £166m to benefit P&L • Inflation • Other efficiencies being
Slide 14: Strong capital generation improving financial resilience
Strong capital generation improving financial resilience Movement in regulatory capital surplus Sources of capital Uses of capital Adjusted capital generation £3.0bn £m +£0.3bn +£0.3bn Adjusted profit before tax 584 (£0.3bn) Tax on adjusted profit (69) +£0.1bn (£0.1bn) +£1.7bn (£0.2bn) Share of asso
Slide 15: Strength of capital position generates options for shareholder value
Strength of capital position generates options for shareholder value Strong and resilient capital position Cash cost of dividend £700m Distributable Net liquid Surplus 626 559 reserves resources1 regulatory capital 495 Cost of dividend £2.3bn £1.7bn £1.7bn Current share buyback of up to £400m • 2019
Slide 16: Disciplined principles for our business
Disciplined principles for our business Principles Progress in 2019 Diversified sources of revenue Growing and diversifying revenue Institutional and Wholesale Strategic insurance partners Using our competitive advantages Platforms and Wealth with focus on growth areas Continued progress on cost bas
Slide 17: Transforming today, investing for tomorrow
Fullyear results 2019 ‘Transforming today, investing for tomorrow Keith Skeoch Chief Executive Standard Life Aberdeen
Slide 18: Key channels driving our business
Key channels driving our business 2019 • Active asset management for • Diversified sources of institutional and wholesale clients revenue Asset management Revenue1 • Offering innovative investment • Distribution coverage Institutional, Wholesale and solutions at scale across four Strategic insurance
Slide 19: Differentiating competitive advantages
Differentiating competitive advantages Our business model Differentiating competitive advantages • Diversified sources of revenue in changing markets through: Investment Distribution • Investment capability in public and capability and channels and deep private markets product set relationships • St
Slide 20: Dynamic industry backdrop
Dynamic industry backdrop Total return indices1 Global mutual fund industry net flows2 130 130 2018 2019 $500bn 120 120 $378bn $302bn $277bn 110 110 100 100 $0bn 90 90 ($133bn) ($200bn) H1 2018 H2 2018 H1 2019 H2 2019 80 80 Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Develo
Slide 21: Actions taken to improve performance driving client flows
Actions taken to improve performance driving client flows Institutional and Wholesale AUM ahead of benchmark Gross inflows by HY 100% £60bn 84% £49.7bn 76% 70% 73% £37.8bn £36.5bn 53% 50% £28.0bn £19.3bn £16.3bn 0% FY 2018 FY 2019 £0bn 1 year 3 years 5 years H2 2018 H1 2019 H2 2019 • Improved perfor
Slide 22: Marked improvement in net flows
Marked improvement in net flows AUMA net flows by HY AUMA net flows by quarter (ex. Lloyds Banking Group tranche withdrawals) (ex. Lloyds Banking Group tranche withdrawals) £10bn £10bn £6.5bn US advisory mandate £5.5bn £0bn £0bn £1.0bn (£1.5bn) (£6.5bn) (£8.3bn) (£7.8bn) (£8.0bn) (£9.1bn) (£9.4bn) (
Slide 23: Institutional and Wholesale – delivering for clients and customers
Institutional and Wholesale – delivering for clients and customers Improved momentum in gross inflows • Flows benefiting from deliberate focus on matching Institutional and Wholesale gross inflows strongest investment capabilities with client demand: £50bn • Equities – China A shares / Euro small ca
Slide 24: Institutional and Wholesale – diversifying revenue by asset class
Institutional and Wholesale – diversifying revenue by asset class Focus on further diversifying sources of revenue across asset classes and geographies Revenue by asset class 2019 New product launches in 2019 – examples 36 new product launches Global Bond HFR Liquid Alternatives Equities 6 2023 Fixe
Slide 25: ESG fully embedded in all our investment processes and client offerings
ESG fully embedded in all our investment processes and client offerings Long-established track record of making ESG considerations core Externally recognised investment approach to our investment approach • ‘Asset Manager of the Year’ at Better Society Awards 2019 • Actively embedding ESG factors si
Slide 26: Platforms and Wealth – diversifying revenue across channels
Platforms and Wealth – diversifying revenue across channels Scale and breadth of capabilities Focus on leveraging market presence Disc. Financial Advised D2C wealth planning Assets2 platform platform mgmt. and advice Wealth/financial planning adviser platforms £4bn Wrap and Elevate Peer 1 £117bn £6b
Slide 27: Platforms and Wealth – combining our proven UK retail capabilities
Platforms and Wealth – combining our proven UK retail capabilities to drive growth and improve profitability Our actions/strategy Combining Platforms and Wealth under one experienced leadership team: Providing a seamless customer experience • Bringing together our proven UK retail capabilities to be
Slide 28: Looking forward – 2020 and beyond
Looking forward – 2020 and beyond Diversified sources of revenue Strategic drivers • Across asset classes and geographies • Breadth of investment capability in public and private markets High impact intelligence • Targeting profitable revenue growth from Platforms and Wealth Expansion of Platforms a
Slide 29: Using strength of capital position to create value for shareholders
Using strength of capital position to create value for shareholders Investing in Adjusted capital the business generation from operations Creating value Strength Delivering and resilience of returns capital position Investing in the business while delivering shareholder returns Standard Life Aberdee
Slide 30: Questions
Fullyear results 2019 Questions Standard Life Aberdeen
Slide 31: Appendix
Fullyear results 2019 Appendix Standard Life Aberdeen
Slide 32: Analysis of adjusted profit before tax by segment
Analysis of adjusted profit before tax by segment Asset Insurance Total management, Discontinued associates and continuing Eliminations Total Platforms and operations joint ventures operations Wealth 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 £m £m £m £m £m £m £m £m £m £m £m £m Fee
Slide 33: Adjusting items
Adjusting items 2018 2019 £m £m Adjusted profit before tax 650 584 Adjusting items: • Restructuring and corporate transaction expenses - Restructuring and corporate transaction expenses (239) (407) largely funding integration and transformation - Gain on sale of stakes in HDFC Life and HDFC Asset Ma
Slide 34: Fee revenue yield by channel and asset class
Fee revenue yield by channel and asset class Fee based Fee revenue Fee revenue yield by channel Average AUMA revenue yield 2018 2019 2018 2019 2018 2019 £bn £bn £m £m bps bps Institutional and Wholesale 261.8 236.3 1,253 1,011 47.9 42.8 Strategic insurance partners 265.0 258.5 347 317 13.1 12.2 Plat
Slide 35: Movement in AUMA by channel
Movement in AUMA by channel Market/Other Corporate Opening AUMA Gross inflows Redemptions Net flows movements actions Closing AUMA 2018 2019 2018 2019 2018 2019 2018 2019 2018 20191 20182 20193 2018 2019 £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn Institutional 192.5 166.7 19.3 27.1 (47.
Slide 36: Total AUM by asset class
Total AUM by asset class 31 December 2018 31 December 2019 Institutional Strategic Institutional Strategic and insurance and insurance Wholesale partners Wealth Total Wholesale partners Wealth1 Total £bn £bn £bn £bn £bn £bn £bn £bn Equities 72.9 44.0 – 116.9 69.0 50.3 – 119.3 Fixed income 46.7 90.0
Slide 37: Detailed split of Institutional and Wholesale AUM by asset class
Detailed split of Institutional and Wholesale AUM by asset class Opening AUM as at Gross Market and Corporate Closing AUM as at 1 Jan 2019 inflows Redemptions Net flows other movements actions 31 Dec 2019 £bn £bn £bn £bn £bn £bn £bn Developed markets equities 12.9 2.7 (3.4) (0.7) 2.5 – 14.7 Emerging
Slide 38: Associates and joint ventures adjusted profit before tax
Associates and joint ventures adjusted profit before tax Ownership at 2018 2019 31 Dec 2019 £m £m Phoenix Group (from 1 Sept 2018) 19.97% 86 136 HDFC Life 14.73% 42 36 Heng An SL 50.00% 12 17 Insurance associates and JV adjusted profit before tax 140 189 Asset management associate and JV – HDFC Asse
Slide 39: Standard Life Aberdeen plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh,
Standard Life Aberdeen plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh, EH2 2LL. www.standardlifeaberdeen.com © 2020 Standard Life Aberdeen. All rights reserved.