PRELIMINARY RESULTS. February 2009

Transcription

1 PRELIMINARY RESULTS February 2009

2 MIKE WILSON Chairman

3 Mike Wilson CHAIRMAN David Bellamy CHIEF EXECUTIVE Andrew Croft FINANCE DIRECTOR Ian Gascoigne SALES DIRECTOR David Lamb BUSINESS DEVELOPMENT DIRECTOR

4 Agenda Introduction Business Update Financials Outlook MIKE WILSON DAVID BELLAMY ANDREW CROFT DAVID BELLAMY Q&A

5 DAVID BELLAMY Chief Executive

6 FTSE % Banking Sector 60% World Stock Markets 20% - 75% Interest Rates 60%

7 New Business by Quarter APE (Annual premiums plus 10% of single premiums) - m 2006 over % +54% +63% +59% 2007 over % +26% +20% +10% 2008 over % +5% +0% -15%

8 Investment new business by quarter Single premiums 2006 over % +47% +49% +36% 2007 over % +39% +30% +16% 2008 over % -4% -20% -24%

9 Pensions new business by quarter Single premiums 2006 over % +78% +106% +147% 2007 over % +52% +27% -4% 2008 over % +10% +19% -3%

10 Funds Under Management ( bn) 16% p.a. compound growth over the last 5 years and 18% p.a. over 10 years

11 Number of Partners

12 ANDREW CROFT Finance Director

13 Analysis of Operating Profit m New business contribution Profits from existing business expected experience variance operating assumption changes (0.9) (2.8) Investment income Total Life/Pension & unit trust Other (20.6) (4.2) Operating profit

14 New Business Contributions m Gross margin (8%) Direct expenses (126.7) (121.9) 4% (18%)

15 New Business Contributions m Gross margin % Direct expenses (126.7) (75.7) +67% %

16 Analysis of Operating Profit m New business contribution Profits from existing business expected experience variance operating assumption changes (0.9) (2.8) Investment income Total Life/Pension & unit trust Other (20.6) (4.2) Operating profit

17 Pre-Tax EEV Profit m Total operating profit Investment variance (320.6) (14.5) Economic changes Pre-tax results (115.9) 230.4

18 Investment Variance Reflects the capitalised impact of the revised future profit expectation But not all funds invested in equities Benefit from fall in strength of sterling Our funds outperformed

19 Pre-Tax EEV Profit m Total operating profit Investment variance (320.6) (14.5) Economic changes Pre-tax results (115.9) 230.4

20 Net Asset Value per Share Net asset value 232.4p (2007 : 252.5p)

21 M C E V

22 IFRS Result Profit before shareholder tax 80.7m 96.1m Profit after shareholder tax 67.1m 78.1m Net asset value per share 105.9p 92.9p

23 Analysis of Post Tax Cashflow m Arising on in force business Arising from new business (67.3) (58.8) Underlying cash result One offs

24 Dividend Interim dividend 1.84 pence up 5% Maintained final dividend at 2.55 pence Full year dividend 4.39 pence up 2.1%

25 Capital Position as at 31 December 2008 m Solvency position Life Other Regulated Other Total Solvency net assets Solvency requirement Solvency ratio 370% 132%

26 DAVID BELLAMY Chief Executive

27 St. James s Place Leading UK Wealth Management company Differentiated business model Own dedicated distribution the Partnership Distinct investment management approach Manufacturer and distributor High brand recognition for trusted advice 286,000 clients Funds under management 16.3 billion at 31 December 2008 Our market (mass affluent/high net worth) 2,000 billion at 31 December 2008

28 External Endorsement Sector winner

29 Delivering Growth Target 15 20% pa New Business Capacity No of Partners Productivity New Business Per Partner But also resilient in more difficult times

30 Dedicated distribution High quality wealth management team Average experience 17 years 97% per annum retention rate No partner accounts for more than 1% APE Initiatives to grow partner numbers Dedicated acquisition team Academy Take advantage of current economic circumstances

31 Growing Number of Partners

32 Average APE per Partner ( k)

33 Broad Geographical Distribution Partners Client FuM 6% 5% 2% 1% 3% 11% 15% 4% 12% 25% 25% 4% 3% 11% 12% 4% 18% 25% Overseas Clients 4%

34 Distinct Investment Management Approach No in-house investment managers which means no conflicts of interest Investment Committee with Stamford Associates advice Ability to appoint the best fund managers with wholesale purchasing power Continuous monitoring plus quarterly reviews Facility to change managers efficiently without churn

35 Relative investment performance Funds under Management - Rolling 5 years

36 External Investment Managers Core Managers Managed Funds THSP Invesco Perpetual - Neil Woodford GAM Andrew Green Schroder Ted Williams Selected Managed Various Specialist Managers Invesco Perpetual Neil Woodford Aberdeen Andrew Preston, Hugh Young Wellington Louis Chabier, Haluk Soykan Bank of Ireland Des Sullivan BGI Graham Hepher, Christopher Sutton GAM Andrew Green Schroder Nick Purves THSP

37 External Investment Managers Core Managers Managed Funds THSP Invesco Perpetual - Neil Woodford GAM Andrew Green Schroder Nick Purves Jupiter Ian McVeigh AXA Framlington Richard Pierson Newton - Alex Stanic Polaris Bernard R. Horn Jnr Specialist Managers Invesco Perpetual Neil Woodford Paul Read, Paul Causer Aberdeen Andrew Preston, Hugh Young Wellington Louis Chabier, Haluk Soykan BGI Graham Hepher, Christopher Sutton GAM Andrew Green Schroder Nick Purves THSP AXA Framlingon George Luckcraft Insight Takis Anastassopoulos Invista Duncan Owen Oldfield Richard Oldfield Thornburg Vinson Walden Polaris Bernard R Horn Jnr Reed Connor Birdwell Jeffrey Bronchick RWC - John Innes State Street Michael Karpik SW Mitchell Stuart Mitchell

38 Simple and Safe No with profits No guaranteed annuity options No longevity risk No split level trusts No derivative-based precipice funds No mortgages / sub prime

39 Responsive Fund Range 2008 Alternative Asset Fund High Octane Fund Cash Unit Trust 2009 Corporate Bond Fund (Investment Grade) Gilt Unit Trust Income Unit Trust - BGI - Oldfield/Thornburg - State Street - Invesco Perpetual - Wellington - Axa Framlington

40 New business Target 15 to 20% pa (18% compound growth since inception and 23% over the last 5 years) APE (Annual premiums plus 10% of single premiums)

41 Funds Under Management ( bn) 28% compound growth since inception and 16% over the last 5 years

42 Current Environment Investment markets under real pressure BUT Growing need for advice Wealth preservation Planning for retirement still a priority

43 Average pension fund for year olds = 150,000 ( 8K pa) 50% of Final Salary Schemes will close 25% of Final Salary Schemes will change Public sector pension schemes also unsustainable

44 Outlook Dedicated advisor-led approach Partnership growing whilst competition shrinking Strong record on retention Growing maturity of in-force book Strong solvency position Focused business model St. James s Place uniquely positioned

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