INTERIM RESULTS July 2012

Agenda Business Update DAVID BELLAMY Financials ANDREW CROFT Outlook DAVID BELLAMY Q&A

Total new business by quarter APE (Annual premiums plus 10% of single premiums) 2009 over %-10%+3%+38% 2010 over %+46%+30%+15% 2011 over %+12%+13%+0% 2012 over %+13%

Single investment by quarter 2009 over %-8%+12%+51% 2010 over %+54%+32%+16% 2011 over %+13%+14%-4% 2012 over %+4%

Pensions new business by quarter APE (Annual premiums plus 10% of single premiums) 2009 over %-9%-14%+16% 2010 over %+31%+32%+18% 2011 over %+22%+21%+19% 2012 over %+28%

Strong retention of funds Retention95% Net inflows + £1.51 bn

Funds under management -6% +34% +20% +29% +25% +18% -10% +31% +26% +8% +6% £30.9bn June

Growth in number of Partner numbers +8% +7% +9% +6% +3.2% +6%

Partner Qualification 91% Partners qualified 6% require one or two exams

Highlights APE growth +5% (Q2 +13%) New Single Investments - £2.76 bn Net inflows - £1.51 bn FUM up £2.4 bn to £30.9 bn Partner numbers up to 1,702 Dividend increase +33%

ANDREW CROFT Chief Financial Officer

Introduction Challenging market during first six months of the year Strong operating performance in all financial measures Of particular note is the continuing growth in the cash emergence of the business Resulting in a 33% increase in the interim dividend Capital and solvency position remains strong

Analysis of EEV operating profit £’mH H New business contribution Profits from existing business – expected – experience variance – operating assumption changes -- Investment income Life & unit trust operating profit Distribution2.0 - Other(8.8)(8.2) Operating profit

New business margin H H PVNBP4.3%4.4% Manufactured APE40.1%41.1% Total APE34.1%38.1%

Non – manufactured business Manufactured proportion 85% compared with 93% in 2011 In 2nd quarter one large £21 million APE group pension case Excluding this case manufactured proportion would be 90% This is a one-off nice to have but distorts the total margin This is most definitely not a trend or anything to be concerned about

Analysis of EEV operating profit £’mH H New business contribution Profits from existing business – expected – experience variance – operating assumption changes -- Investment income Life & unit trust operating profit Distribution2.0 - Other(8.8)(8.2) Operating profit

Analysis of EEV pre-tax result £’mH H Operating profit Investment variance Economic assumption change(2.2) (1.9) Pre-tax result

Analysis of funds under management £’bn30 June 2012 UK equities9.4 European equities 3.5 North American equities 4.3 Asia & Pacific equities 3.6 Property0.8 Fixed Interest4.4 Alternative Investments1.1 Cash 2.5 Other 1.3 Total30.9

Analysis of EEV pre-tax result £’mH H Operating profit Investment variance Economic assumption change(2.2) (1.9) Pre-tax result

EEV net asset value per share penceH H Net asset value per share

IFRS profit before shareholder tax £’mH H Life Unit trust Distribution2.0- Other(8.8)(8.2) Profit before shareholder tax

Pre- tax IFRS profit £’mH H Pre-tax profit Shareholder tax (12.8)(7.7) Post- tax profit Effective tax rate 21.7% 13.9%

£’mH H Expected Market related impacts 3.1(2.5) Other (0.3)(1.0) Change in corporation tax rate (3.7)(3.8) Total tax charge Expected effective tax rate 23.3%27.0% Analysis of shareholder tax charge

IFRS net asset value per share penceH H Net asset value per share

Analysis of post tax cash result £’mH H Arising on in force business % Arising from new business (33.8) (34.0)+0% Underlying cash result % Variances Post tax cash result %

£’mH H Estimated business not yet generating positive cash (£’bn)* Associated annual post tax cash (£’m)* c * Ignores stock market movements and outflows since the date of the original client investment Analysis of EEV pre-tax result

Analysis of post tax cash result £’mH H Arising on in force business % Arising from new business (33.8) (34.0)+0% Underlying cash result % Variances Post tax cash result %

Return on the investment in new business £’mH H Cost of investment (£’m) Post tax EEV profit (£’m) Cash payback period (yrs) 54 IRR (net of tax) 21.0% 23.6% As a % of gross inflows 1.3%

Analysis of post tax cash result £’mH H Arising on in force business % Arising from new business (33.8) (34.0)+0% Underlying cash result % Variances Post tax cash result %

Post-tax cash result 34% Double Half Year* Investment in new business * For illustration purposes

£’m Average closing daily FTSE 100 5,691 5,933(4%) Cash result for first six months (£’m) x3.68 Growth in cash result

Unbroken dividend growth +16% +18% +2% +33% +2.5% +33% * Plus special dividend of 6.35 pence Interim

Expenses Establishment expense growth for the half year was 4.2% We will maintain pressure on these costs but will continue to invest in the business where appropriate (eg Partner recruitment) Development costs were £4.0 million in the first six months and we anticipate a similar spend in the second half of the year Our full year contribution to the FSCS levy to be some £6-7 million (double last year)

Capital position Total group solvency assets at 30 June 2012 were £368.2 million Solvency remains strong Holding a £35.0 million dividend reserve Investment policy for solvency assets continues to be prudent Solvency II

DAVID BELLAMY Chief Executive

‘Trust’ in financial services at an all time low Scandal surrounding LIBOR fixing Product failures – Key Data; Arch Cru; MF Global etc. Regulatory sanctions Increasing FSCS levies Corporate culture & trust – never more important

Business momentum Driven by:- Dedicated team Focused on delivering good outcomes for clients Partner development Quality of new recruits New funds & fund managers

Predictability 37 Partner Numbers Total new Investments %£4.7 bn %£5.2 bn 2012 – Year to date+3%£2.7 bn (Straight line projection)(+6%)(£5.4 bn)

USP’s The Partnership Our Investment approach Our Culture ‘Relationship based business’ 38

2012 Awards 39

Annual Company meeting 40

Foundation Fund Raising Target

Growth in Partner numbers +8% +7% +9% +6% +3.2% +6%

Advice marketplace

Adviser Community Over 400 Advisers 44

New Advisers

Adviser Community Over 400 Advisers Average experience 10yrs Average age Partners formerly advisers 30 ‘second generation’ 46

Academy Two intakes Average earnings c£100,000 Average age 39 Second generation later this year 47

Professional Qualifications 91% qualified 6% - 2 exams or less Over 2,000 qualified individuals 100 Chartered Planners – many more to come 48

SRA 49

50 Dr Mohamed El-ElrianDr Vineer BhansaliCurtis Mewbourne

51 Kenneth Buntrock

Global Equity Income Fund 52 Paul Boyne Doug McGraw

Diversified Portfolios

57

Resilient & Predictable Results Growth in Partner numbers Growth in new business Growth in FUM Growth in shareholder value

Summary APE growth +5% New single investments of £2.76bn New inflows of £1.51bn FUM £30.9bn Partnership growth of 3.2% to 1,702 EEV operating profit £167.8 million IFRS profit £58.9 million Interim dividend up 33% 59