St. James's Place Plc · LSE:STJ
St. James's Place — Investor Presentation (March 2024)
45 slides from St. James's Place's investor presentation, Mar 26, 2024
Slide 1: Investor Pack
S! Jamess Place ahs 72
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
O iew: busi © model & 5/2299 aN Jf \ XY ; SJP
Slide 4: St. James's Place overview
St. James's Place overview We’re a leading UK financial We’ve got a differentiated We’re well positioned to 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 managem
Slide 5: Our business model
Our business model Benefits Advice Our clients: an end-to-end, connected proposition focused on great long-term outcomes Platform & Vertical administration Our Partnership: superior support integration to build a great business over the long-term Investments Our shareholders: long-term, sustainable
Slide 6: Our business priorities
Our business priorities Delivering value Our culture and Building to advisers and clients community being a responsible through our investment business proposition Building and Being easier protecting Continued to do business our brand and financial strength with reputation 6
Slide 7: The market opportunity: rising retail wealth
The market opportunity: rising retail wealth UK aggregate wealth by age cohort 35% 13.5 million 33% 30% 28% ‘mass affluent’ and high net worth 25% 22% individuals… 20% …controlling £2.7tn 15% of liquid assets 12% Source: GlobalData 10% 5% 4% 1% 0% 16 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+ Source:
Slide 8: The value of advice
The value of advice Financial Investment Client net planning returns outcomes Trusted personal relationship 8
Slide 9: 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 9
Slide 10: The market opportunity: undersupply of advice
The market opportunity: undersupply of advice Number of retail investment advisers Source: FCA 45,000 The UK advice gap is large and growing 27,651 40,000 25,616 13.5 million UK mass affluent 35,000 28,227 27,839 27,557 27,501 26,677 individuals controlling £2.7 trillion 26,311 23,787 25,611 21,684
Slide 11: Our business in detail
Our business ily Tai / SJP
Slide 12: The Partnership: fundamental to our business model
The Partnership: fundamental to our business model Clients 958,000+ Supporting clients The Partnership Building great 2,666 4,834 Financial businesses Partner businesses advisers Proposition £168.2 billion FUM Responsible business Data as at 31 December 2023 12
Slide 13: 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 13
Slide 14: 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 market) Data as at 31 December 2023 14
Slide 15: The Partnership: securing tomorrow through our Academy
The Partnership: securing tomorrow through our Academy 35 1,308 26% 43% 335 16%+ 30% Average age Partners and Female Partners from new advisers of new client referred advisers and advisers non-financial in training at investments by the delivered backgrounds end-2023 in 2023 Partnership Data as at 3
Slide 16: The Partnership: advisers by age band
The Partnership: advisers by age band Existing advisers New advisers 4% 5% 1% 18% <35 <35 23% 17% 35-45 35-45 45-55 45-55 55-65 55-65 65+ 65+ 48% 25% 29% 30% 16 Data as at 31 December 2023
Slide 17: The Partnership: driving productivity
The Partnership: driving productivity Targeted growth and development support Business Great client consultancy outcomes drive strong productivity Coaching and leadership development 17
Slide 18: The Partnership: investing in our future
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 18
Slide 19: Our clients: snapshot
Our clients: snapshot 958,000+ 57 3% 6% Clients Average age Overseas clients 1% 54%/46% No ‘typical’ client - all want trusted, personal advice 13% Male/female split 3% 4% 14% 25% 10% Data as at 31 December 2023 19
Slide 20: Our clients: by age band
Our clients: by age band Existing clients New clients 8% 7% 14% 24% 6% <30 <30 18% 30-40 30-40 13% 40-50 40-50 15% 50-60 50-60 60-70 60-70 70+ 70+ 24% 25% 26% 20% Data as at 31 December 2023 20
Slide 21: Our investment proposition
Our investment proposition 24 675 Investment Fund manager Committee meetings monitoring meetings held during 2023 conducted in 2023 £168.2 billion Invested around the world 14,000+ Net-zero Different Committed to securities from aligning portfolios equities, to bonds to net-zero and properties emiss
Slide 22: Our investment proposition: recipe for success
Our investment proposition: recipe for success People & Team Our recipe Investment Beliefs Data, Tech for long-term & Insights performance Investor Governance 22
Slide 23: Our investment proposition: our seven beliefs
Our investment proposition: our seven beliefs 1. Great client 2. Asset 3. Diversification 4. Active outcomes collection management 5. Understand 6. Disciplined 7. Responsible the risk research investment 23
Slide 24: Responsible Business Framework
Responsible Business Enable financial wellbeing for our clients, our people and our Framework communities Financial wellbeing Drive the conversation on investing responsibly Vision Purpose Culture Investing Climate responsibly change Take action on climate change Strategic enablers Community People
Slide 25: Driving the conversation on investing responsibly
Driving 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 clien
Slide 26: Technology at SJP
Technology at SJP Bluedoor Enabling scalability and Delivering efficiency within SJP Scalability growth Next Generation Salesforce Client Experience (NGCX) Hyper-personalised service Efficiency Resilience delivery and efficiency Data &AI Reduce Reduce Leading to a data and complexity operational ris
Slide 27: Our new business
SJP Our new business renames (| / \)\ C T\ —~
Slide 28: The Partnership
The Partnership The Partnership grew 3% in 2023 6,000 to 4,834 advisers Strong pipeline for Academy enrolment 5,000 and experienced recruitment 4,000 335 new advisers in training in the 3,000 Academy at end-23 2,000 1,000 0 2016 2017 2018 2019 2020 2021 2022 2023 28
Slide 29: Net inflows: long-term track record
Net inflows: long-term track record £bn Challenging macroeconomic 3.5 and geopolitical environment 3.0 in 2023, but our business was very resilient: 2.5 − Gross inflows of £15.4 billion 2.0 − Net inflows of £5.1 billion 1.5 − Retention remained strong at 95.3% excluding regular 1.0 withdrawals and m
Slide 30: Funds under management
Funds under management £bn >10% p.a. compound growth over the last 5, 10 and 15 years 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 30
Slide 31: Our financial performance
Our financia Penton ance JT | / | \ \ / fF | | | Lf of | \ \ | / yj / Wi, if HL. WA /| [- SJP
Slide 32: Robust 2023 financials
Robust 2023 financials £392.4m £14.11 23.83p £1,041.0m Underlying cash EEV NAV per share, Full year dividends EEV profit before result, down 4% on down 15% since per share, down exceptional item, 2022 31 December 2022 c.55% on 2022 down 35% on 2022 Robust Solvency II position 32
Slide 33: Underlying post-tax cash result
Underlying post-tax cash result Underlying post-tax cash result down 4% £m 450 on 2022. Strong result driven by: -4% 400 − Rise in average mature FUM in 2023 leading 410.1 392.4 to growth in net income from FUM 350 − Maturing FUM contributing in excess of 300 £40 million to net income from FUM 250 f
Slide 34: FUM in gestation
FUM in gestation Contribution of gestation FUM to the Cash result Gestation FUM of £47.6 billion will £m 300 gradually mature and begin to generate annual product management charges 250 over the next six years, with a high degree of visibility. 200 This will contribute c.£270 million per annum to th
Slide 35: EEV NAV per share
EEV NAV per share EEV NAV per share of £14.11, down 15% £ 18 since 31 December 2022 16 Excludes additional c.£250 million (or c.46 pence per share) value 14 of pensions business falling outside 12 of current contract boundaries 10 8 6 4 2 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 36: Shareholder distributions
Shareholder distributions 2023 full year dividend of 23.83 pence per share Includes proposed final dividend of 8.00 pence per share, subject to shareholder approval at our AGM Future shareholder distribution guidance set at 50% of the Underlying cash result. Annual distributions expected to comprise
Slide 37: Longer-term outlook – why invest in SJP?
Longer-term outlook – why invest in SJP? We are the established market leader in a structural growth market with high barriers to entry. We have a strong track record in driving growth in FUM, delivered through a proven and sustainable advice-led business model and clear strategic objectives. We con
Slide 38: Appendix
Appendix SJP
Slide 39: Global investment management expertise
Global investment management expertise 39
Slide 40: 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 Allows growing Partner businesses to take on the Clients businesses of retiring or downsizing Partners Continu
Slide 41: Partner loans
Partner loans SJP facilitates loans to Partners to support purchases under our BSP scheme Loan book Funding source Security Majority of loans provided to Proportion of loans are established Partners Outstanding loan book at funded by SJP shareholders December 2023 in excess of from Group resources £
Slide 42: Our net zero commitments
Our net zero commitments #1 #2 #3 #4 Climate Net-zero Support our Net-zero in positive in our throughout our Partnership our investments operations supply chain becoming by 2050 by 2025 by 2035 Net-zero by 2035 42
Slide 43: Analyst following
Analyst following Autonomous Andrew Crean Mediobanca Fahad Changazi Barclays Larissa van Deventer Morgan Stanley Ashik Musaddi Bank of America Andrew Sinclair Numis David McCann Berenberg Peter Richardson Panmure Gordon Rae Maile Citi Andrew Baker Peel Hunt Stuart Duncan Exane BNP Paribas Greg Simps
Slide 44: 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 each year over a period of 10 years for a £1
Slide 45: 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
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