REG - Standard Life Aberdn - 2021 Financial Reporting

AberdeenAnnouncement

09/03/2021 07:05

RNS Number : 5740R
  
Standard Life Aberdeen plc
  
09 March 2021
  
 

 
Standard Life Aberdeen plc
 
CHANGES TO FINANCIAL METRICS AND SEGMENTS USED IN EXTERNAL REPORTING 
 
Standard Life Aberdeen plc (SLA) is today setting out details of changes to financial metrics and segments used in its external reporting. The business is now operating under three growth vectors of Investments, Adviser and Personal and accordingly we are changing the way we report the performance of our business.
Key aspects:
•     Three growth vectors and a small corporate centre
•     Recognition that associate status has changed for HDFC Life and Phoenix
•     Adjusted profit will now not include the associates and joint ventures
•     Adjusted operating profit will be the key performance indicator
•     Adjusted EPS will continue to be based on adjusted profit, and therefore will be rebased to reflect the change in associates status and exclusion of the share of associates and joint ventures profit
•     Adjusted capital generation remains unchanged
The table below sets out the impact of the revised basis:



2020


Adjusted operating profit


Adjusted profit before tax


Adjusted capital generation


IFRS profit before tax




As reported


£219m


£487m


£262m


£838m




Revised basis


£219m


£240m


£262m


£838m




 


 


 


 




2020


Adjusted diluted EPS


Diluted EPS


Adjusted diluted capital generation

per share


 




As reported


18.1p


37.9p


11.7p1


 




Revised basis


8.8p


37.9p


11.7p


 











1 Not previously reported.
 
Segmental reporting
Previously, we reported our results under two segments (under IFRS 8):
·    'Asset management, platforms and wealth' comprising all wholly owned business, HDFC Asset Management our Indian asset management associate, and the Virgin Money joint venture; and
·    'Insurance associates and joint ventures' comprising our life assurance associates and joint ventures - HDFC Life, Phoenix and HASL.
Further information on this segment reporting is set out on page 129 of the Annual report and accounts 2020.
Going forwards, from half year 2021 onwards, we will report our results under the following four segments which reflect how the business is now managed and reported:
·     'Investments' - Our global asset management business which provides investment solutions for Institutional, Wholesale and Insurance clients
·    'Adviser' - Our market-leading UK financial adviser business which provides services through the Wrap and Elevate platforms to wealth managers and advisers
·    'Personal' - Our Personal business combines our financial planning business 1825, our digital direct-to-consumer services and discretionary fund management services provided by Aberdeen Standard Capital
·    'Corporate/Strategic ' - This segment mainly comprises certain corporate costs (c£15m in 2020) and businesses held for sale (Parmenion which is expected to be sold in 2021 and SL Asia which was sold in June 2020)
Set out below is the new presentation of our reportable segments and adjusted profit metric. The segments are reported to the level of adjusted operating profit in line with management reporting. The reconciliation between the current and revised basis can be found in Appendix A.
9 March 2021



Reportable segments from continuing operations







Investments


Adviser


Personal


Corporate/ strategic


Total




31 December 2020


£m


£m


£m


£m


£m




Fee based revenue


1,176


137


80


32


1,425




Adjusted operating expenses


(990)


(89)


(85)


(42)


(1,206)




Adjusted operating profit


186


48


(5)


(10)


219




Adjusted net financing costs and investment return1


















21




Adjusted profit before tax 


















240




Tax on adjusted profit


















(38)




Adjusted profit after tax 


















202




Adjusted for the following items
























Restructuring and corporate transaction expenses 


















(316)




Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts


















(1,180)




Profit on disposal of interests in associates


















1,858




Change in fair value of significant listed investments


















65




Other 


















22




Total adjusting items


















449




Dividends from significant listed investments


















-





Share of profit from associates and joint ventures


















194




Impairment of joint ventures


















(45)




Tax on adjusting items


















53




Profit attributable to non-controlling interests (preference shares)


















(5)




Profit for the year attributable to equity shareholders of Standard Life Aberdeen plc


















848




Profit attributable to non-controlling interests
























Preference shares


















5




Profit for the year


















853



 
1 'Capital Management' has been renamed 'Adjusted net financing costs and investment return'.
 
Enquiries:



Institutional Investors
Catherine Nash
Helen Rennardson


 
+44 (0) 7798 518 657
+44 (0) 7554 010 422




 


 




Media
Katy Hetherington 


 
+44 (0) 7841 344 374
 




Group Secretariat
Paul McKenna


 
+44 (0)131 372 0703



Standard Life Aberdeen plc's LEI Code is 0TMBS544NMO7GLCE7H90




 
 
Appendix A - Reconciliation between current and revised basis



Current basis 






Asset management associates and joint ventures


Insurance associates and joint ventures






 
 
 
 
Revised basis 








£m


£m


£m


£m








Fee based revenue


1,425 


-



-



1,425 


Fee based revenue




Adjusted operating expenses


(1,206)


-



-



(1,206)


Adjusted operating expenses




Adjusted operating profit


219 


- 


- 


219 


Adjusted operating profit




Capital management


21 


-



-



21 


Adjusted net financing costs and investment return




Share of associates' and joint ventures' profit before tax


247 


(44)


(203)


-



N/A




Adjusted profit before tax


487 


(44)


(203)


240 


Adjusted profit before tax 




Tax on adjusted profit


(38)


-



-



(38)


Tax on adjusted profit




Share of associates' and joint ventures' tax expense


(38)


12 


26 


-



N/A




Adjusted profit after tax


411 


(32)


(177)


202 


Adjusted profit after tax 




Adjusted for the following items


















Adjusted for the following items




Restructuring and corporate transaction expenses


(355)


10 


29 


(316)


Restructuring and corporate transaction expenses 




Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts


(1,287)


-



107 


(1,180)


Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts




Profit on disposal of interests in associates


1,858 


-



-



1,858 


Profit on disposal of interests in associates




Impairment of associates and joint ventures


(45)


45 


-



-



N/A




Change in fair value of significant listed investments


65 


-



-



65 


Change in fair value of significant listed investments




Investment return variances and economic assumption changes


46 


-



(46)


-



N/A




Other


86 


-



(64)


22 


Other




Total adjusting items


368 


55 


26 


449 


Total adjusting items




N/A


-



-


-


-


Dividends from significant listed investments




N/A


-



42 


152 


194 


Share of profit from associates and joint ventures




N/A


-



(45)


-



(45)


Impairment of joint ventures




Tax on adjusting items


53 


-



-



53 


Tax on adjusting items




Share of associates' and joint ventures' tax expense on adjusting items


21 


(20)


(1)


-



N/A




Profit attributable to non-controlling interests (preference shares)


(5)


- 


-



(5)


Profit attributable to non-controlling interests (preference shares)




Profit for the year attributable to equity shareholders of Standard Life Aberdeen plc


848 


-


- 


848 


Profit for the year attributable to equity shareholders of Standard Life Aberdeen plc




Profit attributable to non-controlling interests






 










Profit attributable to non-controlling interests




Preference shares


5 


- 


-



5 


Preference shares




Profit for the year


853 


-


- 


853 


Profit for the year



 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
  END
 
 
UPDFIFVIVAIAIIL