INTERIM RESULTS July 2007. Mike Wilson CHAIRMAN David Bellamy CHIEF EXECUTIVE Andrew Croft FINANCE DIRECTOR Ian Gascoigne SALES DIRECTOR Mike Wilson CHAIRMAN.

INTERIM RESULTS INTERIM RESULTS

July 2007July 2007

Mike WilsonCHAIRMAN

David BellamyCHIEF EXECUTIVE

Andrew CroftFINANCE DIRECTOR

Ian GascoigneSALES DIRECTOR

Mike WilsonCHAIRMAN

David BellamyCHIEF EXECUTIVE

Andrew CroftFINANCE DIRECTOR

Ian GascoigneSALES DIRECTOR

MIKE WILSONMIKE WILSONChairmanChairman

AgendaAgenda

IntroductionIntroduction MIKE WILSONMIKE WILSON

FinancialsFinancials ANDREW CROFTANDREW CROFT

New Business New Business DAVID BELLAMYDAVID BELLAMY

Partnership Partnership IAN GASCOIGNEIAN GASCOIGNE

SummarySummary MIKE WILSONMIKE WILSON

ANDREW CROFTANDREW CROFTFinance DirectorFinance Director

EEV Pre-Tax ProfitEEV Pre-Tax Profit

£’m£’m 20072007 20062006

LifeLife 96.796.7 64.364.3Unit trustUnit trust 28.028.0 18.118.1Combined life and unit trustCombined life and unit trust 124.7124.7 82.482.4Other operationsOther operations (4.0)(4.0) (2.1)(2.1)Operating profitOperating profit 120.7120.7 80.380.3 +50%+50%Investment varianceInvestment variance 24.324.3 11.911.9Economic changesEconomic changes (11.4)(11.4) (7.6)(7.6)Pre-tax profitPre-tax profit 133.6133.6 84.684.6Normalised taxNormalised tax (32.7)(32.7) (22.7)(22.7)Tax rate changeTax rate change 20.120.1 --Post-tax profitPost-tax profit 121.0121.0 61.961.9

Analysis of Life & Unit Trust Pre-Tax Operating ProfitAnalysis of Life & Unit Trust Pre-Tax Operating Profit

£’m£’m 20072007 20062006

New business contributionNew business contribution 71.571.5 51.551.5 +39%+39%

Profits from existing businessProfits from existing business–expectedexpected 43.643.6 34.534.5–experience varianceexperience variance 6.36.3 (1.8)(1.8)–operating assumption chargesoperating assumption charges (0.2)(0.2) (4.2)(4.2)

Investment incomeInvestment income 3.53.5 2.42.4

Operating profitOperating profit 124.7124.7 82.482.4

2007 New Business Contribution2007 New Business Contribution

• Margin as % of APE expanded to 33.5% from Margin as % of APE expanded to 33.5% from 33% achieved for the 2006 full year and 32% 33% achieved for the 2006 full year and 32% in the first half of 2006in the first half of 2006

• Margin as % of PVNBP increased to 4.3% the Margin as % of PVNBP increased to 4.3% the same as the 2006 full year and 4.2% for the same as the 2006 full year and 4.2% for the first half of 2006first half of 2006

• Further expansion in second half as we Further expansion in second half as we continue to grow new business whilst continue to grow new business whilst maintaining control of expense growthmaintaining control of expense growth

Analysis of Life & Unit Trust Pre-Tax Operating ProfitAnalysis of Life & Unit Trust Pre-Tax Operating Profit

£’m£’m 20072007 20062006

New business contributionNew business contribution 71.571.5 51.551.5 +39%+39%

Profits from existing businessProfits from existing business–expectedexpected 43.643.6 34.534.5–experience varianceexperience variance 6.36.3 (1.8)(1.8)–operating assumption chargesoperating assumption charges (0.2)(0.2) (4.2)(4.2)

Investment incomeInvestment income 3.53.5 2.42.4

Operating profitOperating profit 124.7124.7 82.482.4

Net Asset Value per ShareNet Asset Value per Share

Net asset valueNet asset value

239.6 pence239.6 pence

Fully diluted net asset value Fully diluted net asset value

237.7 pence237.7 pence

DividendDividend

• Interim dividend 1.75 pence up 17%Interim dividend 1.75 pence up 17%

Analysis of Adjusted Post Tax CashflowAnalysis of Adjusted Post Tax Cashflow

£’m£’m20072007 20062006

Net annual management feeNet annual management fee60.360.3 43.843.8

Unwind of surrender penaltiesUnwind of surrender penalties(21.8)(21.8) (15.9)(15.9)

Loss/profit arising onLoss/profit arising onnew businessnew business (4.7)(4.7) 2.82.8

Establishment expensesEstablishment expenses(32.5)(32.5) (29.7)(29.7)

Investment incomeInvestment income4.54.5 2.82.8

MiscellaneousMiscellaneous7.37.3 2.92.9

Underlying cashflowUnderlying cashflow13.113.1 6.76.7

Tax relief on b/fwd expensesTax relief on b/fwd expenses -- 22.622.6

13.113.1 29.329.3

DAVID BELLAMYDAVID BELLAMYChief ExecutiveChief Executive

2007 New Business Results - Quarter 22007 New Business Results - Quarter 2

New businessNew business3 months3 months

to 30 Juneto 30 June%%

ChangeChange

–InvestmentsInvestments£66.2m£66.2m

+39%+39%

–PensionsPensions£44.5m£44.5m

+17%+17%

–ProtectionProtection£5.0m£5.0m

-15%-15%

Total (RP + 1/10 SP)Total (RP + 1/10 SP)£115.7m£115.7m

+26%+26%

2007 New Business Results - Quarter 22007 New Business Results - Quarter 2

New business - New business - InvestmentsInvestments3 months3 months

to 30 June to 30 June%%

ChangeChange

–New Single PremiumsNew Single Premiums£430.4m£430.4m

+44%+44%

–New Unit TrustsNew Unit Trusts£67.7m£67.7m

+44%+44%

–New ISA’sNew ISA’s£163.6m£163.6m

+27%+27%

Total Total £661.7m£661.7m

+39%+39%

2007 New Business Results - Quarter 22007 New Business Results - Quarter 2

New business - New business - PensionsPensions3 months3 months

to 30 Juneto 30 June%%

ChangeChange

–New Single PremiumsNew Single Premiums£247.5m£247.5m

+54%+54%

–New Regular PremiumsNew Regular Premiums£19.7m£19.7m

-10%-10%

Total (RP + 1/10 SP)Total (RP + 1/10 SP)£44.5m£44.5m

+17%+17%

2007 New Business Results – Year to June2007 New Business Results – Year to June

New business - New business - PensionsPensions6 months6 months

to 30 June to 30 June%%

ChangeChange

–New Single PremiumsNew Single Premiums£479.8m£479.8m

+75%+75%

–New Regular PremiumsNew Regular Premiums£36.7m£36.7m

+18%+18%

Total (RP + 1/10 SP)Total (RP + 1/10 SP)£84.7m£84.7m

+45%+45%

2007 New Business Results – Year to June2007 New Business Results – Year to June

New business - New business - InvestmentsInvestments6 months6 months

to 30 June to 30 June%%

ChangeChange

–New Single PremiumsNew Single Premiums £781.2m£781.2m +33%+33%–New Unit TrustsNew Unit Trusts £136.2m£136.2m +33%+33%–New ISA’sNew ISA’s £272.3m£272.3m +25%+25%

Total Total £1,189.7m£1,189.7m +31%+31%

2007 New Business Results – Year to June2007 New Business Results – Year to June

New business New business 6 months6 months

to 30 June to 30 June%%

ChangeChange

–InvestmentsInvestments £119.0m£119.0m +31%+31%–PensionsPensions £84.7m£84.7m +45%+45%–ProtectionProtection £9.8m£9.8m -15%-15%

Total (RP + 1/10 SP) Total (RP + 1/10 SP) £213.5m£213.5m +33%+33%

Total New Business by QuarterTotal New Business by Quarter

APE APE (RP + 1/10 SP)

£44m

£60m£52m

£65m£69m

£92m£85m

£103m£98m

£116m

Q1 Q2 Q3 Q4

2005 2006 2007

+29%+29% +29%+29%2005 over 20042005 over 2004 +1%+1%

2006 over 20052006 over 2005 +57%+57% +54%+54%

+26%+26%2007 over 20062007 over 2006 +41%+41%+63%+63%

+39%+39%

+59%+59%

Pension New Business by QuarterPension New Business by Quarter

APE APE (RP + 1/10 SP)

£13m

£21m

£16m

£21m£21m

£38m£35m

£46m

£40m£44m

Q1 Q2 Q3 Q4

2005 2006 2007

+39%+39% +15%+15%2005 over 20042005 over 2004 +11%+11%

2006 over 20052006 over 2005 +55%+55% +79%+79%

+17%+17%2007 over 20062007 over 2006 +95%+95%+117%+117%

+41%+41%

+123%+123%

New Business Mix – 2005 & 2007New Business Mix – 2005 & 2007

57%57%57%57% 32%32%32%32%

APE (RP + 10% of single premiums)

2005

11%11%11%11%

InvestmentInvestment ProtectionProtection PensionsPensions

Manufactured proportion Manufactured proportion

83%83%

54%54%54%54% 40%40%40%40%

6%6%6%6%

56%56%56%56% 40%40%40%40%

4%4%4%4%

2006

Manufactured proportion Manufactured proportion

87%87%

2007

Manufactured proportion Manufactured proportion

88%88%

Funds Under Management (£bn)Funds Under Management (£bn)

3.14.6

5.7 6.3 5.97.9

9.5

12.3

15.417.3

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

1998 - 20071998 - 2007

31%31% 47%47% 24%24% 10%10% -6%-6% 34%34% 20%20% 29%29% 25%25%

(Percentage growth)

12%12%

Bernie Horn

John InnesIan McVeigh

£157k£193k

£312k

£406k

2004 2005 2006 2007*

New Business per PartnerNew Business per Partner

+23%+23%

+18%+18%

+61%+61%+30%+30%

*Based on 1st 6 months

2007 Results to Date2007 Results to Date

Very positiveVery positive

• New business resultsNew business results

• Productivity gainsProductivity gains

• Growth in Funds under ManagementGrowth in Funds under Management

• Signs on recruitmentSigns on recruitment

IAN GASCOIGNEIAN GASCOIGNESales DirectorSales Director

RecruitmentRecruitment

• Recruitment UpdateRecruitment Update

• The AcademyThe Academy

• MarketingMarketing

• Partnership OutlookPartnership Outlook

RecruitmentRecruitment

• 2006 recruitment momentum has continued2006 recruitment momentum has continued• Establishment up 30 for the half year,Establishment up 30 for the half year,

+2.6% growth+2.6% growth• Application pipeline is ahead of last yearApplication pipeline is ahead of last year• Approximately 50% of applications areApproximately 50% of applications are

from IFA’sfrom IFA’s• Anticipate further interest due to RetailAnticipate further interest due to Retail

Distribution ReviewDistribution Review• Continued development of specialist teamContinued development of specialist team

bearing fruitbearing fruit

AcademyAcademy

• First intake of 20 progressing well through First intake of 20 progressing well through qualificationsqualifications

• Second intake of 20 to start in OctoberSecond intake of 20 to start in October

• Potential impact on manpower in 2008Potential impact on manpower in 2008

……and 2 weekday/workday executionsand 2 weekday/workday executions

MarketingMarketing

• Brand awareness campaign toBrand awareness campaign tosupport Partnershipsupport Partnership

• Topical copy and original placementTopical copy and original placement

• Aimed at clients with assets and issues but Aimed at clients with assets and issues but without time, expertise or inclinationwithout time, expertise or inclination

Insight ResearchInsight Research

• High levels of client satisfaction High levels of client satisfaction

• Clients becoming wealthier and SJP Clients becoming wealthier and SJP increasing client ‘share of wallet’increasing client ‘share of wallet’

• Relationships with Partner and SJPRelationships with Partner and SJPvery strongvery strong

• Client satisfaction a key driver in Partner Client satisfaction a key driver in Partner productivityproductivity

“From the moment we started with St. James’s Place clients it was obvious that we were experiencing something very unusual and special.

Client feedback was much more favourable and positive than we have encountered with any other financial client. Over the years, we have witnessed stronger feedback only once, for Apple Computer (whose customer loyalty is legend). The fact that St. James’s Place enjoy similar levels of client satisfaction is remarkable and almost unknown in the financial sector.”

Director of Research Insight 2006 Ledbury

Insight ResearchInsight Research

• Clients gaining confidence in SJPClients gaining confidence in SJP

• Clients needing more and continued advice Clients needing more and continued advice and value access to range of expertsand value access to range of experts

• This is driving an increase in referralsThis is driving an increase in referralsand introductionsand introductions

• 24% of new clients coming from24% of new clients coming fromclient introductionsclient introductions

PartnershipPartnership

• Reporting little competition ‘on the ground’Reporting little competition ‘on the ground’

• Re-framing their own business expectations Re-framing their own business expectations and capabilityand capability

• Partner morale highPartner morale high

SummarySummary

• 2006 joiners making a positive impact2006 joiners making a positive impact

• 2007 recruitment ahead of last year2007 recruitment ahead of last year

• Clear evidence of customer satisfaction Clear evidence of customer satisfaction assisting increased productivityassisting increased productivity

• Launch of marketing campaign to support Launch of marketing campaign to support PartnershipPartnership