Aj Bell Plc · LSE:AJB
Aj Bell — H1 2022 Earnings Presentation
24 slides from Aj Bell's earnings presentation, May 26, 2022
Slide 1: Interim results for the six months ended 31 March 2022
Interim results For the six months ended 31 March 2022 Issued on 26 May 2022
Slide 2: Agenda
Agenda Title Page Business update 3 Financial update 11 Outlook 16 Appendix 20 Glossary 22 AJ Bell | Interim results for the six months ended 31 March 2022 2
Slide 3: Business update
DAJBell Business update
Slide 4: HY22 key messages
HY22 key messages We are in an attractive market Our dual-channel model serves the benefiting from long-term structural growing advised and D2C segments, growth drivers maximising our growth opportunity Our scale and diversified revenue We have launched Dodl by AJ Bell, a model has enabled us to low
Slide 5: Key investment highlights
Key investment highlights An update on the key pillars of the AJ Bell investment case Key investment highlight HY21 update » UK platform market currently worth approximately £1 trillion, with around two-thirds advised and one-third D2C Our market » £3 trillion total addressable market presents a sig
Slide 6: Our market
Our market A growing market within the UK retail savings and investment industry Uncertain market backdrop for investors in the short term However… long-term structural growth drivers remain strong (3) Cost of living increasing, driven by rising inflation(1) A fast-growing platform market 14% CAGR A
Slide 7: Our propositions
Our propositions An award-winning platform operating in both advised and D2C market segments, with in-house investment solutions Advised` market D2Cmarket D2C market Figure 5 Full service propositions Established platform propositions offering a wide range of investment choice and functionality Simp
Slide 8: Our propositions: advised and D2C
Our propositions Advised propositions D2C propositions » Pricing reductions announced, delivering further value across a » Pricing reductions announced, sharing the benefits of our scale with range of advised customer scenarios our customers at a time when living costs are rising » Flexible ISA laun
Slide 9: Our customers
Our customers A growing base of loyal, high quality customers Figure 6 Figure 7 Advised D2C Customers Customers Average customer profile +8% in HY22 to 137,201 Average customer profile +10% in HY22 to 266,182 55 years old (HY21: 56) 43 years old (HY21: 43) AUA AUA £339k of AUA (HY21: £347k) £77k of
Slide 10: Platform AUA – gross inflows from new and existing customers
Our customers Platform AUA – gross inflows from new and existing customers HY22 HY21 Commentary Figure 8 Gross inflows Gross inflows » Gross inflows across the platform up by 8% to £3.2bn £2.8bn £5.4 billion (HY21: £5.0 billion) £1.0bn £0.9bn 31% 32% Advised £2.2bn £1.9bn 69% 68% » New customers aga
Slide 11: Financial update
DAJBell Financial update
Slide 12: HY22 financial highlights
HY22 financial highlights Figure 10 HY22 HY21 +/- Commentary » Revenue growth slower than customer & AUA growth due to lower Revenue £75.5m £73.9m 2% revenue margin, caused by: - Normalised D2C customer dealing activity Revenue margin 20.3bps 24.0bps (3.7bps) - Lower average interest rate earned on
Slide 13: Revenue analysis
Revenue analysis Revenue by proposition, nature of revenue streams and revenue margins Figure 11 HY21 HY22 (£m) (£m) Commentary A well diversified revenue model – our mix of fixed fees and recurring 40.0 +11% 38.5 34.6 3.0 3.0 charges provides resilience across different market conditions Advised 20
Slide 14: Cost and PBT Analysis
Cost and PBT Analysis Figure 12 HY21 HY22 (£m) (£m) Business as usual drivers Other factors » Higher D2C marketing activity in an » Low prior year comparative: increasingly competitive market Distribution - COVID restrictions impacted +41% 7.6 » AJ Bell brand investment, including a sponsorship oppo
Slide 15: Capital and dividend
Capital and dividend Our highly cash generative and capital light model supports a progressive dividend Figure 13 Figure 14 Regulatory capital position Dividend payments £ million HY22 FY21 Pence per share HY22 FY21 +/- Total shareholder funds 115.9 130.7 Interim 2.78 2.46 13% Final 4.50 Less: unreg
Slide 16: Outlook
YAJBell Outlook
Slide 17: Financial outlook - guidance
Financial outlook - guidance Figure 16 FY22 previous guidance Updates to FY22 guidance Outlook for FY23 Advised D2C Non- Advised D2C Non- » Platform revenue margins to Platform Platform platform Platform Platform platform increase further from H2-FY22 levels (see page 18 for details), to: Full-year
Slide 18: Financial outlook – platform revenue margin progression
Financial outlook – platform revenue margin progression Interest rate tailwind will boost platform revenue margins in the second half Advised revenue margin D2C revenue margin FY21 FY21 FY21 FY22 FY22 FY22 FY21 FY21 FY21 FY22 FY22 FY22 H1 H2 H1 H2 H1 H2 H1 H2 43.0bps >18.0bps 17.6bps >35.0bps 16.9bp
Slide 19: Outlook
Outlook » Continued platform market growth – the long-term growth drivers for the market remain strong and the addressable market is estimated to be worth approximately £3 trillion » Our dual-channel model positions us well to increase market share – advised and D2C segments remain highly attractive
Slide 20: Appendix
DAJBell Appendix
Slide 21: Appendix I: Platform Customers, AUA and AUM
Appendix I Platform Customers, AUA and AUM Figure 19 HY22 HY21 Commentary Advised D2C Total Advised D2C Total Customers platform Platform Platform platform Platform Platform Opening customers 126,920 241,045 367,965 108,911 172,183 281,094 » Continued organic growth in platform customers, closing Ne
Slide 22: Glossary
YAJBell Glossary
Slide 23: Glossary
Glossary AGM Annual General Meeting AUA Assets Under Administration AUM Assets Under Management BPS Basis Points CET1 Common Equity Tier 1 D2C Direct to Consumer DC pension Defined Contribution Pension FCA Financial Conduct Authority FY21/FY22 Year Ended 30 September 2021/2022 HY21/HY22 Six Months E
Slide 24: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in it.