INTERIM RESULTS

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• INTERIM RESULTS
• July 2009

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Mike WilsonCHAIRMAN David BellamyCHIEF
EXECUTIVE Andrew CroftFINANCE DIRECTOR
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• MIKE WILSON
• Chairman

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Agenda

• Introduction MIKE WILSON
• Business Update DAVID BELLAMY
• Financials ANDREW CROFT
• Outlook DAVID BELLAMY
• QA

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• DAVID BELLAMY
• Chief Executive

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Total new business by quarter

• APE (Annual premiums plus 10 of single premiums)

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Manufactured new business by quarter

• APE (Annual premiums plus 10 of single premiums)

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Investment new business by quarter

• Single premiums

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Pensions new business by quarter

• Single premiums

78
106
2006 over 2005
83
147
2007 over 2006
106
54
27
-3
9
2008 over 2007
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18
-3
0
2009 over 2008
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10

• Total new investments of over 1.5bn
• Net inflows of 1bn
• 25

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Funds Under Management (bn)
16 p.a. compound growth over the last 5 years
and 18 p.a. over 10 years
18
3
-10
25
29
20
34
10
-6
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Number of Partners
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Partnership Number First Half Growth
Highest first half growth in absolute and
relative terms for many years
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Summary

• Total APE of 203m (manufactured 90)
• New inflows of 25 to 1bn
• Partner numbers up 3.7

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• ANDREW CROFT
• Finance Director

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Analysis of Operating Profit
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Margin

• Lower total new business
• Manufactured business 90 compared with 84
• Increased proportion of pension business
• Total direct expenses down 5 and establishment
  costs down 2
• Margin as percentage of APE increased to 30.2
  (2008 29.6)

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Analysis of Operating Profit
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Analysis of Operating Profit
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Analysis of Operating Profit
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Analysis of Operating Profit
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Analysis of Operating Profit
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Analysis of Pre-Tax Result
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Investment Variance

• Continued falls in world stock markets in first
  six months
• FTSE 100 4
• MSCI () 7
• SP 500 () 10
• Actual return more than 6 below assumed rate of
  positive growth of 2
• The negative variance will reverse as and when
  markets recover

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Analysis of Pre-Tax Result
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Analysis of Pre-Tax Result
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Net Asset Value per Share

• Net asset value
• 234.3p

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Capital Position

• Total group solvency assets at 30 June 2009 are
  248.6 million (2008 251.8 million)
• Solvency remains strong
• Investment policy for solvency assets continues
  to be prudent
• Solvency II

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Analysis of Adjusted Post Tax Cashflow
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Miscellaneous

• Reduction in ability to fully group relieve
  taxable losses (c. 4.0 million)
• Increase in actuarial reserves from the stock
  market fall and economic basis changes (c. 3.0
  million)
• Lower income from third party product sales (c.
  1.0 million)

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Dividend

• Interim dividend
• Maintained at 1.84 pence

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IFRS Result
2008
2009
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Summary

• Manufactured proportion at 90
• Establishment expenses 2 below last year
• Positive experience variance
• Robust operating profit
• Strong solvency position

Resilient Performance
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• DAVID BELLAMY
• Chief Executive

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Interim Results

• Another resilient performance
• Strong net inflows
• Exceptional retention
• Excellent recruitment
• Robust operating profit

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Retail Distribution Review

• We support the sense of direction
• Raising standards working with the Partnership
• Status Disclosure another view
• Removing Provider / Product bias further
  consultation
• Better placed than most

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• A change of government?
• Further tax changes (CGT, Income, VAT,
  Inheritance)
• Further opportunities
• Very experienced leadership team

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Partnership Number First Half Growth
Highest first half growth in absolute and
relative terms for many years
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Partnership

• Strong recruitment momentum
• Infrastructure development
• Further segmentation
• Streamline business approach

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Investment Management Approach

• Attracted over 10bn in last 5 years
• New Fund Managers

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St. Jamess Place UK General Progressive Fund
Fund Manager Changes September 2009
John Wood
Peg McGetrick

• 19 years industry experience
• John joined JOHCM in October 2005 from Newton
  Investment Management

• Co-Founder and Managing Partner of Liberty Square
  Asset Management
• Prior to this Peg was a partner at Grantham,
  Mayo, Van Otterloo and Company where she headed
  the International Active Equity Division

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St. Jamess Place Greater European Progressive
Fund
Stuart Mitchell
Kenneth A. Broekaert

• 19 years industry experience
• John joined JOHCM in October 2005 from Newton
  Investment Management
• Joined J O Hambro Investment Management in 1998
  and was made a Director and appointed the role of
  Head of Specialist Equities
• Stuart Mitchell founded S.W. Mitchell Capital
  (SWM) in April 2005

• Vice President and Portfolio Manager of European
  equities at Burgundy Asset Management
• Ken joined Burgundy in April 2003, having
  previously worked at The Boston Consulting Group

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Investment Management Approach

• Attracted over 10bn in last 5 years
• New Fund Managers
• Further evolution
• Capital accumulation, preservation and
  decumulation
• Broaden fund classes
• Not exclusively long only equities
• More structured portfolios
• Regular and active reviews
• Building on success of IMA

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Looking Forward

• Our target group is growing
• They are more concerned than ever about Tax
• They are more concerned than ever about their
  wealth
• The Adviser population is shrinking
• 200,000() down to 50,000(ish)
• Trust is in short supply

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