Aberdeen Group Plc · LSE:ABDN
Aberdeen — FY2024 Earnings Presentation
41 slides from Aberdeen's earnings presentation, Mar 4, 2025
Slide 1: Aberdeen
aberdeen
Slide 2: Full year results 2024
Full year results 2024 4 March 2025
Slide 3: Agenda
Agenda Highlights & strategy overview Jason Windsor Financial performance & outlook Ian Jenkins Strategy update Jason Windsor Q&A 2|
Slide 4: Highlights & strategy overview
Highlights & strategy overview Jason Windsor
Slide 5: A Wealth & Investments group that is gaining momentum
A Wealth & Investments group that is gaining momentum • Three core businesses, each with scale positions and headroom for growth • Simplifying our business, focusing on where we have competitive advantage, particularly in Strengthening Investments our foundations • New management structure and leade
Slide 6: Clear priorities and financial ambitions
Clear priorities and financial ambitions interactive Sustain efficient growth by building on our New 2026 Group targets differentiated proposition and investing in investor the ii brand FY 24 FY 26 2yr Δ Return to net inflows by enhancing our Adviser proposition and delivering leading client Adjuste
Slide 7: Financial performance & outlook
Financial performance & outlook Ian Jenkins
Slide 8: Delivering improved financial performance in 2024
Delivering improved financial performance in 2024 Strong growth in interactive investor, improved flows in Investments, and Growing our business Adviser flows a work-in-progress Expenses 7% lower, benefiting from delivery of £70m of in-year Improving efficiency transformation savings (£106m run rate
Slide 9: Improved profitability and capital generation
Improved profitability and capital generation FY 24 FY 23 Change Adjusted net operating revenue £1,321m £1,398m (6)% • Adjusted operating profit up 2% driven by significant progress in achieving efficiencies Adjusted operating expenses £(1,066)m £(1,149)m 7% • Revenue 6% lower, reflecting net outflo
Slide 10: Profit growth across all three businesses
Profit growth across all three businesses interactive investor Adviser Investments +7% +5% +22% £118m £126m Adjusted £111m £116m Adjusted Adjusted operating operating operating profit1 profit2 profit £61m £50m FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 Adjusted net Adjusted net Adjusted net £259m £278m £22
Slide 11: interactive investor: Sustainable customer growth and scalable business model
interactive investor Sustainable customer growth and scalable business model Customers Net flows • 8% total customer growth, with 29% increase +8% 439k +97% £5.7bn in customers with a SIPP 407k • Net flows almost doubled to £5.7bn, ranking ii £2.9bn #1 for net flows across the UK D2C industry2 +29%
Slide 12: Adviser: Profitability reflects scale, return to net inflows is the priority
Adviser Profitability reflects scale, return to net inflows is the priority Net flows AUMA (£bn) +2% • Net flows £1.8bn lower, with actions in place to £(1.8)bn return to net inflows 6.5 75 74 (10.4) 5.6 • Revenue increased by 6%, with net outflows offset by higher markets and a full 12-month £(2.1)
Slide 13: Investments: Focus on efficiency creating a platform for profitable growth
Investments Focus on efficiency creating a platform for profitable growth I&RW Net flows Investments AUM (£bn) +£18.2bn +1% • Gross flows (I&RW) up 31% to £25.5bn, £0.3bn 0.3 (4.3) 13.6 (6.6) 370 ex-liquidity 367 • Net flows (I&RW) improved by £18.2bn to £0.3bn £(17.9)bn FY 23 FY 24 FY 23 Markets Ne
Slide 14: Transformation on track to deliver >£150m savings by end 2025
Transformation on track to deliver >£150m savings by end 2025 Movement in group adjusted operating expenses £1,149m • Achieved £106m of run rate savings in 2024 • Delivered £70m of in-year cost savings, exceeding our commitment of £60m £1,066m £(70)m • Reduced adjusted operating expenses by 7% to £1
Slide 15: Growing net capital generation
Growing net capital generation Capital generation £307m ACG £299m • Net capital generation up 34% £69m • Adjusted capital generation up 3% to Restructuring and £307m (FY 23: £299m) corporate transaction £121m expenses (net of tax) +34% • Net restructuring and corporate transaction expenses down 43%
Slide 16: Strong capital base and additional assets
Strong capital base and additional assets Capital (FY 24) CET1 and coverage ratio £1.5bn 139% • Strong CET1 of £1.5bn with coverage ratio of 139% AT1 and Tier 2 debt £0.8bn / • Additional net assets not in capital (gross / qualifying) £0.5bn1 unchanged at £1.3bn • Investment in Phoenix supporting st
Slide 17: Outlook and 2025 financial guidance
Outlook and 2025 financial guidance Long-term structural growth in UK wealth Outlook Whilst market conditions remain challenging for active asset managers, there are pockets of growth opportunities (asset class / regional / product / channel-based) Investment has created increased capacity for susta
Slide 18: Strategy update
Strategy update Jason Windsor
Slide 19: Our ambition is to be the UK's leading Wealth & Investments group
Our ambition is to be the UK’s leading Wealth & Investments group interactive Our Purpose Adviser investor Enabling our clients to be better investors Advised investing Self-directed investing platform and trading platform £75bn AUA £78bn AUA UK #2 Our Ambition UK #1 (by AUA)2 (by Net flows)1 To be
Slide 20: Well-positioned for market growth opportunities
Well-positioned for market growth opportunities Market opportunities Business Size of opportunity Where we can win UK: Transfer of c.£5.5tn expected Intergenerational wealth transfer over the next 25 years1 Dynamic retirement solutions Increasing personal responsibility UK: 35% of adults (19.1m) hol
Slide 21: interactive investor: Leading D2C platform - set for further growth
interactive investor Leading D2C platform - set for further growth Leading position in the large and fast-growing UK D2C Aiming to be the UK’s #1 D2C platform platform market with headroom to grow with best-in-class propositions £4.6tn Disruptive and market leading pricing model UK Savings and Wealt
Slide 22: interactive investor: Diversified and resilient revenue streams
interactive investor Diversified and resilient revenue streams 2024 ii Platform revenue1 Margin sensitivity is limited Cash balances growing strongly +12% BoE average base rate +13% 600 (and forecast range)3 £268m £6.0bn £6.2bn £240m 500 £5.5bn £60m 400 £184m £58m 300 £70m £58m £48m 200 £55m 100 £13
Slide 23: interactive investor: Focus on meeting broader customer needs
interactive investor Focus on meeting broader customer needs Sustain efficient growth by building on our Strategic differentiated proposition and investing in the ii advice focus ii brand (digital advice service) Managed SIPP ii 360 (“help me do it” SIPP) (advanced trading platform) Broadening and d
Slide 24: Adviser: Business realising value from its significant investment
Adviser Business realising value from its significant investment Trusted partner for UK advisers as demand for advice Objective to return to growth continues to grow amongst consumers £4.6tn Long-standing relationships with leading UK IFAs UK Savings and Wealth Market Reliable platform with strong c
Slide 25: Adviser: Focus on client service excellence and leading proposition
Adviser Focus on client service excellence and leading proposition Return to net inflows by enhancing our Examples of improving service timings across processes Strategic proposition and delivering leading focus 2023 2024 2025 Target client service Speed to answer calls 6 mins 5 s 1 min 13 s 1 min I
Slide 26: Investments: Repositioning to take advantage of clear market opportunities
Investments Repositioning to take advantage of clear market opportunities Opportunities for specialist active asset managers A specialist asset manager, investing in areas of strength in a transitioning industry and protecting valued propositions Private Markets & Alternatives Global AUM Strong heri
Slide 27: Investments: Focus on growth and performance in areas of strength
Investments Focus on growth and performance in areas of strength Step change in profitability by repositioning to £70bn AUM in Private Markets & Alternatives Strategic areas of strength and opportunity, focus £1.1bn Net inflows in FY24 and driving improved efficiency • Growing European Real Estate,
Slide 28: Our approach to delivery under new Group leadership
Our approach to delivery under new Group leadership Disciplined approach to deliver on our New, streamlined leadership team driving accountability priorities and pace of decision making Strengthened management structure Robust execution capability and performance management Jason Windsor Ian Jenkins
Slide 29: Talent and culture priorities
Talent and culture priorities Focus areas Target outcomes • Clarity and high performance from the top New and aligned leadership teams • Aligned focus on clients • Increased speed of execution Improve our operating model • Greater proximity to business • Attracting and retaining the best talent Inve
Slide 30: New Group COO to drive long-term benefits from Transformation
New Group COO to drive long-term benefits from Transformation Example Transformation activities in 2025 Creating long-term benefits for the Group Investments operating model enhancements Set up our businesses for growth Operational process reviews Phoenix simplification programme Deliver better outc
Slide 31: Clear principles for capital allocation
Clear principles for capital allocation Sustainably grow Preserve a strong Maintain current Invest in our business in business earnings balance sheet dividend a disciplined way Allocate resources to areas Strong CET1 and coverage Build sufficient coverage High bar for organic of strength through imp
Slide 32: Pension surplus: unlocking value today and retaining optionality
Pension surplus: unlocking value today and retaining optionality Significant and Expect no impact on adjusted operating sustainable boost to profit as DC contributions continue to be capital generation expensed c.£35m Annual increase in net capital Retaining long-term Annual review of the appropriat
Slide 33: Our strategic focus areas and delivery ambition
Our strategic focus areas and delivery ambition FY 2026 Targets interactive Sustain efficient growth by building on our Customer growth 8% p.a. differentiated proposition and investing in investor the ii brand Cost/AUMA ratio <20 bps Return to net inflows by enhancing our Net Promoter Score1 >+40 Ad
Slide 34: Q&A
Q&A
Slide 35: Forward-looking statements
Forward-looking statements This document may contain certain ‘forward-looking statements’ with respect to the financial and reporting requirements, and tax and other legislation and regulations (including changes to the condition, performance, results, strategies, targets (including ESG targets), ob
Slide 36: abrdn plc registered office
abrdn plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh, EH2 2LL www.abrdn.com © 2025 abrdn. All rights reserved. 35 |
Slide 37: Appendices
Appendices
Slide 38: Investor updates and focus sessions in 2025
Investor updates and focus sessions in 2025 Q1 2025 AUMA and net flows trading update 30 April AGM 8 May interactive investor focus session 26 June Half year results 2025 30 July Q3 2025 AUMA and net flows trading update 22 October 37 |
Slide 39: Delivering better performance across our businesses
Delivering better performance across our businesses interactive investor Adviser Investments Total customer numbers1 Total customers Net flows in I&RW 439k 401k £0.3bn % change from FY 23 % change from FY 23 change from FY 23 +8% (4)% +£18.2bn SIPP customers1 AUA market share2 AUM 81k 11% £370bn % c
Slide 40: Investments – focus on flows and performance
Investments – focus on flows and performance FY 2024 FY 2023 Investment performance1 Net flows 3-year 1-year £bn £bn Equities Equities 15% 32% (7.9) (7.2) Fixed income 90% 83% Fixed income - (4.0) Multi-asset 36% 85% Multi-asset (1.5) (3.2) Real assets 46% 30% Private equity - (0.4) Alternative inve
Slide 41: Analysis of profit
Analysis of profit FY 2024 FY 2023 Change Adjusted net operating revenue 1,321 1,398 (6)% Adjusted operating expenses (1,066) (1,149) 7% Adjusted operating profit 255 249 2% Adjusted net financing costs and investment return 99 81 22% Adjusted profit before tax 354 330 7% Restructuring and corporate