1. ANNUAL RESULTS February 2010

2. MIKE WILSON Chairman

3. Mike Wilson CHAIRMAN David Bellamy CHIEF EXECUTIVE Andrew Croft FINANCE DIRECTOR Mike Wilson CHAIRMAN David Bellamy CHIEF EXECUTIVE Andrew Croft FINANCE DIRECTOR

4. Agenda Introduction MIKE WILSON Business Update DAVID BELLAMY Financials ANDREW CROFT Outlook DAVID BELLAMY Q&A

5. DAVID BELLAMY Chief Executive

6. Review of 2009 New Business Total single investments of £3.5bn up 13%Total single investments of £3.5bn up 13% APE of £440.8m up 5%APE of £440.8m up 5% Manufactured proportion 91%Manufactured proportion 91%

7. Investment new business S Single premiums -12%+20% 2009 over 2008 -15%+64%

8. Pensions new business S Single premiums -0%-1% 2009 over 2008 +11%+30%

9. Total single investments -8%+12% 2009 over 2008 -6%+50%

10. Total new business (APE) APE (Annual premiums plus 10% of single premiums) -10%+3% 2009 over 2008 -5%+38%

11. Manufactured new business (APE) -3%+12% 2009 over 2008 -1%+43% APE (Annual premiums plus 10% of single premiums)

12. Review of 2009 Funds under Management Continued 95% retentionContinued 95% retention Net inflows of funds of £2.3bn up 35%Net inflows of funds of £2.3bn up 35% Funds under management £21.4bn up 31%Funds under management £21.4bn up 31%

13. Net inflow of funds under management 11%12% Percentage of opening FUM 9%14%9% +56% +36% -10% +35%

14. Review of 2009 Partnership Continued strong retentionContinued strong retention 20 Academy graduates20 Academy graduates Partnership numbers 1464 up 9%Partnership numbers 1464 up 9%

15. Number of Partners +5% +2% +8% +7% +9%

16. Review of 2009 New Business Total single investments of £3.5bn up 13%Total single investments of £3.5bn up 13% APE of £440.8m up 5% (H1 -8%; H2 +20%)APE of £440.8m up 5% (H1 -8%; H2 +20%) Manufactured proportion 91%Manufactured proportion 91% Funds under Management Continued 95% retentionContinued 95% retention Net inflows of funds of £2.3bn up 35%Net inflows of funds of £2.3bn up 35% Funds under management £21.4bn up 31%Funds under management £21.4bn up 31%Partnership Continued strong retentionContinued strong retention 20 Academy graduates20 Academy graduates Partnership numbers 1464 up 9%Partnership numbers 1464 up 9%

17. ANDREW CROFT Finance Director

18. Profit measures EEV Result reflects the net present value of future shareholder cash flowsResult reflects the net present value of future shareholder cash flows Cash result Is a measure of the underlying cash generated by the businessIs a measure of the underlying cash generated by the business Reflects the positive cash flow from in force business less the negative cash flow from acquiring new businessReflects the positive cash flow from in force business less the negative cash flow from acquiring new business IFRS result Aims to smooth the emergence of profit over the life of the contractAims to smooth the emergence of profit over the life of the contract We manage shareholder value based on the EEV and cash result and not the IFRS result

19. Highlights EEV new business profit of £155.4 million up 26%EEV new business profit of £155.4 million up 26% EEV operating of £228.9 million up 12%EEV operating of £228.9 million up 12% EEV pretax profits of £363.2 million compared with a loss of £115.9 million in 2008EEV pretax profits of £363.2 million compared with a loss of £115.9 million in 2008 EEV net asset value per share of 284.5p up 22%EEV net asset value per share of 284.5p up 22% Final dividend of 2.66p up 4%Final dividend of 2.66p up 4%

20. Analysis of Operating Profit £’m20092008 New business contribution 155.4 123.5 123.5 Profits from existing business –expected 78.380.5 –experience variance 11.616.9 –operating assumption changes (1.5) (1.5) (0.9) (0.9) Investment income 5.64.9 Life & unit trust operating profit 249.4224.9 Other(20.5)(20.6) Operating profit 228.9204.3

21. Margin Higher new businessHigher new business Manufactured business 91% compared with 86%Manufactured business 91% compared with 86% Total direct expenses and establishment costs down 4%Total direct expenses and establishment costs down 4% Margin as percentage of APE increased to 35.3% (2008: 29.5%)Margin as percentage of APE increased to 35.3% (2008: 29.5%)

22. Analysis of Operating Profit £’m20092008 New business contribution 155.4 123.5 123.5 Profits from existing business –expected 78.380.5 –experience variance 11.616.9 –operating assumption changes (1.5) (1.5) (0.9) (0.9) Investment income 5.64.9 Life & unit trust operating profit 249.4224.9 Other(20.5)(20.6) Operating profit 228.9204.3

23. Analysis of Operating Profit £’m20092008 New business contribution 155.4 123.5 123.5 Profits from existing business –expected 78.380.5 –experience variance 11.616.9 –operating assumption changes (1.5) (1.5) (0.9) (0.9) Investment income 5.64.9 Life & unit trust operating profit 249.4224.9 Other(20.5)(20.6) Operating profit 228.9204.3

24. Analysis of Operating Profit £’m20092008 New business contribution 155.4 123.5 123.5 Profits from existing business –expected 78.380.5 –experience variance 11.616.9 –operating assumption change (1.5) (1.5) (0.9) (0.9) Investment income 5.64.9 Life & unit trust operating profit 249.4224.9 Other(20.5)(20.6) Operating profit 228.9204.3

25. Analysis of Operating Profit £’m20092008 New business contribution 155.4 123.5 123.5 Profits from existing business –expected 78.380.5 –experience variance 11.616.9 –operating assumption change (1.5) (1.5) (0.9) (0.9) Investment income 5.64.9 Life & unit trust operating profit 249.4224.9 Other(20.5)(20.6) Operating profit 228.9204.3

26. Analysis of Operating Profit £’m20092008 New business contribution 155.4 123.5 123.5 Profits from existing business –expected 78.380.5 –experience variance 11.616.9 –operating assumption change (1.5) (1.5) (0.9) (0.9) Investment income 5.64.9 Life & unit trust operating profit 249.4224.9 Other(20.5)(20.6) Operating profit 228.9204.3

27. Analysis of Pre-Tax Result £’m20092008 Operating profit 228.9204.3 Investment variance 148.2(320.6) Economic assumption change (13.9)0.4 Pre-tax result 363.2(115.9)

28. Investment Variance Sensitivity provided is for a 10% change in the value of equitiesSensitivity provided is for a 10% change in the value of equities Some 70/80% of our funds under management are invested in equitiesSome 70/80% of our funds under management are invested in equities Our funds are global and the £ MSCI is the best index to use in your modellingOur funds are global and the £ MSCI is the best index to use in your modelling

29. Analysis of Pre-Tax Result £’m20092008 Operating profit 228.9204.3 Investment variance 148.2(320.6) Economic assumption change (13.9)0.4 Pre-tax result 363.2(115.9)

30. Analysis of Pre-Tax Result £’m20092008 Operating profit 228.9204.3 Investment variance 148.2(320.6) Economic assumption change (13.9)0.4 Pre-tax result 363.2(115.9)

31. EEV Net Asset Value per Share Net asset value 284.5p

32. Analysis of Post Tax Cash Result £’m20092008 Arising on in force business 88.891.4 Arising from new business (65.3) (67.3) (67.3) Cash Result 23.524.1

33. Dividend Final dividend Increased by 4% to 2.66 pence Full year dividend Up 2.5% to 4.5 pence

34. Capital Position Total group solvency assets of £263.3Total group solvency assets of £263.3 Solvency remains strongSolvency remains strong Investment policy for solvency assets continues to be prudentInvestment policy for solvency assets continues to be prudent Solvency IISolvency II

35. IFRS Result £’m20092008 One–off items -16.2 Share options (8.6) (8.6) (14.9) (14.9) Interest income 6.1 6.122.6 Other52.456.8 Profit before policyholder tax 49.980.7

37. IFRS example £100,000 unit trust investment£100,000 unit trust investment 5% bid offer spread and 3% directly attributable expenses5% bid offer spread and 3% directly attributable expenses Cash profit of £2,000 (£5,000-3,000)Cash profit of £2,000 (£5,000-3,000) IFRS result spreads profit over the expected life of contractIFRS result spreads profit over the expected life of contract If expected life of the contract is 5 years then year 1 profit is £400If expected life of the contract is 5 years then year 1 profit is £400 However if expected life of contract is 10 years then year 1 profit is £200However if expected life of contract is 10 years then year 1 profit is £200 A tension between managing the IFRS result and shareholder valueA tension between managing the IFRS result and shareholder value

38. Summary Record new businessRecord new business Establishment expenses 4% below last yearEstablishment expenses 4% below last year Record new business contributionRecord new business contribution Highest ever marginHighest ever margin Positive experience variancePositive experience variance Increased operating profitIncreased operating profit Strong solvency positionStrong solvency position Increased dividendIncreased dividend

39. DAVID BELLAMY Chief Executive

40. Review of 2009 A record yearA record year in new businessin new business in funds under managementin funds under management in new business profitin new business profit in recruitment and size of the Partnershipin recruitment and size of the Partnership A year of two halvesA year of two halves

41. 2009 Productivity (APE per Partner)

42. The Growth Model Target 15 – 20% pa New Business Capacity No of Partners Productivity New Business Per Partner

43. 2009 Productivity (APE per Partner)

44. 2009 Growth in APE Total APE Growth -10%+3%-5%+38%

45. Productivity (APE per Partner £’000s) +61% +23% +14% -9% -3%

46. Number of Partners +5% +2% +8% +7% +9%

48. Retail Distribution Review Further demonstration of our professionalismFurther demonstration of our professionalism Accredited SJP moduleAccredited SJP module Realigned management structureRealigned management structure We will minimise fall out and disruptionWe will minimise fall out and disruption

49. Retail Distribution Review Provider/Product Bias No provider biasNo provider bias Minor product differences – already addressedMinor product differences – already addressed Restricted Advice Variation on a themeVariation on a theme Investment Management Approach is keyInvestment Management Approach is key Professional and trusted advice is what mattersProfessional and trusted advice is what matters

50. Retail Distribution Review Adviser Charging Still not clearStill not clear Vertically Integrated Firms are different (to IFA’s)Vertically Integrated Firms are different (to IFA’s) Our approach is integratedOur approach is integrated we are responsible for the advice (we guarantee it!)we are responsible for the advice (we guarantee it!) we have a distinct investment approachwe have a distinct investment approach we build long term relationshipswe build long term relationships The market will decide if ‘margins’ are to changeThe market will decide if ‘margins’ are to change but supply and demand principles will prevailbut supply and demand principles will prevail

51. Retail Distribution Review Having a positive impact on recruitmentHaving a positive impact on recruitment We’re embracing the ‘Diploma’We’re embracing the ‘Diploma’ We’ve addressed any question of ‘bias’We’ve addressed any question of ‘bias’ We believe we are better placed than mostWe believe we are better placed than most

52. Evolving Fund Range 2008 Alternative Asset Fund - BlackrockAlternative Asset Fund - Blackrock High Octane Fund- OldfieldHigh Octane Fund- Oldfield Cash Unit Trust- State StreetCash Unit Trust- State Street2009 Corporate Bond Fund - Invesco PerpetualCorporate Bond Fund - Invesco Perpetual Gilt Unit Trust- WellingtonGilt Unit Trust- Wellington Income Unit Trust- Axa FramlingtonIncome Unit Trust- Axa Framlington New managers - Burgundy/Liberty Square/JO HambroNew managers - Burgundy/Liberty Square/JO Hambro

53. Investment Management Approach Emerging Market FundEmerging Market Fund Global Bond FundGlobal Bond Fund Absolute Return FundAbsolute Return Fund

54. Strengthen the Team Senior team together for 18 yearsSenior team together for 18 years Development from withinDevelopment from within Charles Gregson – new Non-ExecutiveCharles Gregson – new Non-Executive Chris Ralph, Vivian Bazalgette & Peter DunscombeChris Ralph, Vivian Bazalgette & Peter Dunscombe

55. The SJP Opportunity In excess of 8m people in the UK with liquid assets over £50kIn excess of 8m people in the UK with liquid assets over £50k In excess of 500,000 people in the UK with liquid assets over £500kIn excess of 500,000 people in the UK with liquid assets over £500k Total liquid assets estimated to be over of £1.5 trillion over 50% of which is held in cashTotal liquid assets estimated to be over of £1.5 trillion over 50% of which is held in cash

56. The SJP Opportunity ISA’sISA’s £170bn - Cash (BSA)£170bn - Cash (BSA) £116bn - Stocks & shares (HMRC)£116bn - Stocks & shares (HMRC) £220bn Building Society deposits (BSA)£220bn Building Society deposits (BSA) £750bn Bank deposits (LBG)£750bn Bank deposits (LBG) £480bn Mutual Funds (IMA)£480bn Mutual Funds (IMA)

57. The Opportunities Increasing tax burdenIncreasing tax burden Sustained low interest ratesSustained low interest rates People not confident they have enough for retirementPeople not confident they have enough for retirement Migration from DB pensions to DC continuesMigration from DB pensions to DC continues Fewer advisers (200,000 – 1990; 50,000 – 2010)Fewer advisers (200,000 – 1990; 50,000 – 2010)

58. Summary Proven track record of growthProven track record of growth Resilient in tough marketsResilient in tough markets Well positioned for future growthWell positioned for future growth