FULL-YEAR RESULTSFebruary 2018

ANDREW CROFTChief Executive

Mike Wilson CBE

Founder and Life President

1943 - 2018

Agenda

Financial Performance

Business Update

Q&A

CRAIG GENTLEChief Financial Officer

Agenda

• Recap of new business

• The cash result

• The embedded value result

• Solvency

• Dividends

£6.8bn£7.9bn

£9.2bn

£11.4bn

£14.6bn

2013 2014 2015 2016 2017

Gross inflows

Up 29%

£4.2bn£5.1bn

£5.8bn£6.8bn

£9.5bn

2013 2014 2015 2016 2017

Net inflows

Up 40%

Funds under management

£44.3bn£52.0bn

£58.6bn

£75.3bn

£90.7bn

2013 2014 2015 2016 2017

Up 20%

Adviser growth

2013 2014 2015 2016 2017

3,661

Up 7%

Operating cash result

£623.2m

£315.2m

£(266.1)m

£129.4m£(189.9)m

£22.0m

£(3.4)m

Net annualmanagement fee

Reduction in feesin gestation

period

Margin arisingfrom newbusiness

Expenses Shareholderinterest and tax

relief from capitallosses

Miscellaneous Operating cashresult

Reduction in fees in gestation and new business

margin higher post unit liability reassessment

Strong growth in FUM = strong growth in annual

fee income

Growth in expenses driven by establishment expenses

and elevated FSCS levy

Operating cash result +39%

+39%

+22%

Emergence of cash from FUM in gestation

Year

FUM

(£bn)

Post-tax cash

(£ million)

2012 2.9 22.3

2013 4.0 30.8

2014 4.5 34.7

2015 5.3 40.8

2016 6.3 48.5

2017 7.6 58.5

30.6 235.6

FUM in gestation now stands at

£30.6 billion.

This FUM is not yet contributing

to the cash result

Will contribute additional £235.6 million

per annum when out of gestation

Cash result

£’m 2017 2016

Operating cash result 315.2 226.0

Academy (6.6) (5.8)

Asia (15.1) (12.2)

DFM (6.9) (3.2)

Strategic development costs (5.4) (5.3)

Underlying cash result 281.2 199.5

Back-office infrastructure development (21.7) (16.7)

Variance (6.9) (7.4)

Cash result 252.6 175.4

Rowan Dartington seeing good inflows; FUM>£2bn

Asia progressing well; have fully licensed and operational life co in Hong Kong;

120 advisers across Hong Kong, Shanghai and Singapore

Back-office infrastructure costs include dual-running expenses

Academy making strong contribution. Future expenses will be recognised in

operating cash

Underlying cash result up 41%

EEV operating profit

£779.8m£918.5m

£209.5m

£3.8m £44.0m £7.3m

£(31.9)m £(26.8)m£(67.2)m

New businesscontribution

Unwind ofthe discount

rate

Experiencevariance

Operatingassumption

change

Investmentincome

Distributionbusiness

Back officeinfrastructuredevelopment

Other EEVoperating

profit

EEV operating profit up 36%

Positive assumption change re improving persistency across on-shore bonds,

ISA and UT

New business profit reflects strong inflows plus

EV benefit from new Retirement Account+50%

+36%

EEV operating profit

EEV profit before tax up 8%

£918.5m

£1,289.1m

£340.8m

£29.8m

EEV operating profit Investment returnvariance

Economic assumptionchanges

EEV profit before tax

NAV per share 1067.5p

Capital and Solvency

• Review of MSB completed in H2 2017, taking account of

ORSA and forward Capital Management approach for our UK

Life company

• Net outcome is £82m release from Life businesses MSB,

which will be retained to support business growth

• Solvency position remains strong

Dividend outlook

• Final dividend up 33% to 27.45p, resulting in 30% increase

in full year dividend to 42.86p

• Full year pay-out ratio of 80% of underlying cash result

• For guidance purposes, we believe pay-out ratio 80% of

underlying cash result is sustainable, based on current growth plans

• Dividend outcome reflects strong capital position, maturing cash

generation and confidence in prospects

Financial Summary

• Strong 2017 results on all measures

• Growth in FUM contributed to underlying cash result up 41%

• FUM in gestation now stands at £31bn, which will support

future growth in the cash result

• Proposed final dividend up 33%; full year dividend up 30%

ANDREW CROFTChief Executive

9,638 10,112 10,559 11,046 11,496 11,952 12,393

2015 2016 E 2017 E 2018 F 2019 F 2020 F 2021 F

The SJP Market Place

UK individuals with between £50k and £5m of investable wealth

Source: Global Data, January 2018

E = Estimated F = Forecasts

£1.9trn£2.1trn £2.2trn £2.3trn £2.3trn £2.4trn £2.5trn

2015 2016 E 2017 E 2018 F 2019 F 2020 F 2021 F

The SJP Market Place

Amount of investable wealth held by UK individuals with more than £50k

Source: Global Data, January 2018

E = Estimated F = Forecasts

Individual Responsibility

Active membership of private sector

occupational pension schemes

Source: ONS

With pension freedoms comes responsibility

Complex pension choices require expert advice

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Defined benefit Defined contribution

Individuals need to be

Their own Actuary

Their own Investment Manager

Their own Trustee

Find a trusted adviser to do it for them

OR

Savings Gap

World Economic Forum urges UK to

prepare for workforce of 80 year olds,

as savings gap set to quadruple to £25

trillion

Most over-50s underestimate life expectancy

Six million middle-class workers not saving enough for retirement, DWP warns

Intergenerational Transfer of Wealth

£2.8 Trillion

Total wealth

available over the

next 30 years

from United

Kingdom residents

aged 55 and over

Source: Capital Economics, Office for National Statistics’ Wealth and Asset Survey and HMRC’s Personal Wealth Survey

0

10,000

20,000

30,000

40,000

50,000

2011 2012 2013 2014 2015 2016

Bank Advisers Financial Advisers DFM/Stockbrokers Other Firms

Advice Gap

Source: APFA/FSA/FCA

Number of AdvisersFCA admits RDR contributed to advice gap

St. James’s Place Academy

• 124 advisers graduated from our Academies over the past 12 months

• 18% of new business from London advised on by former Academy graduates

• 261 students currently enrolled

• 100 to 120 of these students are expected to graduate in 2018

• Four regional Academies (London, Manchester, Solihull & Edinburgh)

Typical intake:

• Average age under 40

• 87% hold degrees

• 24% are women

Market is large and growing

Considerable savings gap

Growing need and demand for advice

PERFECT ENVIRONMENT FOR SJP

Advice gap

St. James’s Place – Unique selling points

• The St. James’s Place Partnership

The Partnership: Delivering Face to Face Advice

• c.2,400 Partner businesses

• c.3,600 qualified advisers

• 5,000 Partner support staff

• Supported by 1,700 employees

• 2,000 dedicated back office staff

St. James’s Place – Unique selling points

• The St. James’s Place Partnership

• Our distinct approach to Investment Management

Our Approach to Investment Management

Peter Dunscombe

WinRobbins

StevenDaniels

DavinaCurling

‘Independent Expertise’

Appoint the

fund managers

Set performance

objectives

Risk management

and strategy

Decisions:

Change firm?

Change manager?

No change?

THE

INVESTMENT

COMMITTEE

‘MANAGES THE MANAGERS’

Global Investment Management Expertise

SJP Portfolios vs ARC Private Client Indices – 2017

4.6%

6.7%

8.5% 8.5%

12.6%

5.2%

6.8%7.5%

4.5% 4.5%

6.7%

9.4%

11.4%

4.5%

6.7%

9.4%

Defensive Conservative Balanced Managed Adventurous ImmediateIncome

Balanced Income Deferred Income

SJP Portfolios ARC PCI Peer Group

SJP Portfolios vs ARC Private Client Indices – last 5 years

3.5%

5.9%

7.6%

10.3%10.9%

6.6%

7.6%

8.8%

4.0% 4.0%

6.2%

8.1%

9.5%

4.0%

6.2%

8.1%

Defensive Conservative Balanced Managed Adventurous ImmediateIncome

Balanced Income Deferred Income

SJP Portfolios ARC PCI Peer Group

St. James’s Place – Unique selling points

• The St. James’s Place Partnership

• Our distinct approach to Investment Management

• Security

Security

• Due diligence embedded within our investment proposition

• Technical support

• Quality assurance and guaranteed advice

• Succession planning for Partners

• Well capitalised, strong balance sheet

Cost v Value

VALUE OF

ADVICE

INCLUDING

TAX ALPHA

PERSONAL

RELATIONSHIP

INVESTMENT

PERFORMANCE

CLIENT NET

OUTCOMES

FCA Financial Lives Survey

FCA Financial Lives Survey

Financial Advice

Market

Robo-Advice

Market

The fee they paid for advice

represented good value for money72% 21%

High rating regarding satisfaction

with their adviser* 85% 32%

High rating regarding trust with

their adviser* 86% 25%

*percentage of clients who provided a score between 7-10 on a scale of 0-10

* Those individuals who scored 7, or more, out of 10 in the survey.

Would recommend

96%

Satisfaction with level of

Partner contact

91%

Value for money

98%

Overall satisfaction

94%

SJP Client Survey

3.3%

1.9%

Full Advice Service

Grant Thornton has collated and computed data in the attached table from publicly available information, and some mystery shopping face-to-face meetings, at the

date noted for use by St. James’s Place and its Partners. Grant Thornton accepts no duty of care or liability of any kind whatsoever to any other third parties, including

without limitation clients or investors. Use of this report should not, and does not, absolve any third parties from using due diligence in verifying the report’s contents.

The information must not be relied upon by any party in making investment decisions.

10 year reduction in yield comparison

St. James’s

Place

Source: Grant Thornton Adviser Charges Report, December 2017

2018

• Regulatory Change

• Infrastructure

• Investment Management Approach

• SJP Asia

• Rowan Dartington

• People

2018

• Regulatory Change

• Infrastructure

• Investment Management Approach

• SJP Asia

• Rowan Dartington

• People

2018

• Regulatory Change

• Infrastructure

• Investment Management Approach

• SJP Asia

• Rowan Dartington

• People

2018

• Regulatory Change

• Infrastructure

• Investment Management Approach

• SJP Asia

• Rowan Dartington

• People

2018

• Regulatory Change

• Infrastructure

• Investment Management Approach

• SJP Asia

• Rowan Dartington

• People

2018

• Regulatory Change

• Infrastructure

• Investment Management Approach

• SJP Asia

• Rowan Dartington

• People

Summary

• 2017 a record year in many respects

• Great opportunities ahead – increasing demand and an advice gap

• Confident in our ability to grow in line with our stated objectives

of 15-20% per annum

• Balance sheet strengthened further

• Dividend outlook reflects ongoing confidence in the business and

financials

APPENDIX

IFRS post-tax profit

£’m 2017 2016

IFRS profit 145.8 111.7

DAC/DIR/PVIF 48.1 16.8

Underlying profit 193.9 128.5

Non-cash settled share-based payments 30.5 23.9

Deferred tax impacts 15.0 21.1

Other 13.2 1.9

Cash result 252.6 175.4