PRELIMINARY RESULTS

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• PRELIMINARY RESULTS
• February 2009

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• MIKE WILSON
• Chairman

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Mike WilsonCHAIRMAN David BellamyCHIEF
EXECUTIVE Andrew CroftFINANCE DIRECTOR Ian
GascoigneSALES DIRECTOR David LambBUSINESS
DEVELOPMENT DIRECTOR
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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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• FTSE 100 â 31
• Banking Sector â 60
• World Stock Markets â 20 - 75
• Interest Rates â 60

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New Business by Quarter

• APE (Annual premiums plus 10 of single premiums)
  - m

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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
105
52
27
-4
10
2008 over 2007
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19
-3
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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
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Number of Partners
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• ANDREW CROFT
• Finance Director

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Analysis of Operating Profit
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New Business Contributions
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New Business Contributions
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Analysis of Operating Profit
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Pre-Tax EEV Profit
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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

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Pre-Tax EEV Profit
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Net Asset Value per Share

• Net asset value
• 232.4p (2007 252.5p)

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• M C E V

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IFRS Result
2007
2008
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Analysis of Post Tax Cashflow
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Dividend

• Interim dividend 1.84 pence up 5
• Maintained final dividend at 2.55 pence
• Full year dividend 4.39 pence up 2.1

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Capital Position as at 31 December 2008
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• DAVID BELLAMY
• Chief Executive

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St. Jamess 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

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External Endorsement
Sector winner - 2008
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Delivering Growth
Target 15 20 pa
New Business
Capacity No of Partners
Productivity New Business Per Partner

• But also resilient in more difficult times

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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

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Growing Number of Partners
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Average APE per Partner (k)
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Broad Geographical Distribution
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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

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Relative investment performance
Funds under Management - Rolling 5 years
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External Investment Managers - 2003

• 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

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External Investment Managers - 2009

• 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

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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

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Responsive Fund Range

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

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

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

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• Average pension fund for 50-65 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

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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. Jamess Place uniquely positioned

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