2018 Interim results Sanne Group plc 11 September 2018 Strictly private and confidential
Caution statement Forward looking statements This presentation may contain and the Company may make verbal statements containing "forward-looking statements" with respect to certain of the Company's plans and its current goals and expectations relating to its future financial condition, performance, strategic initiatives, objectives and results. Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "seek", "may", "could", "outlook" or other words of similar meaning. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the control of the Company, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, the effect of competition, inflation, deflation, the timing effect and other uncertainties of future acquisitions or combinations within relevant industries, the effect of tax and other legislation and other regulations in the jurisdictions in which the Company and its respective affiliates operate, the effect of volatility in the equity, capital and credit markets on the Company's profitability and ability to access capital and credit, a decline in the Company's credit ratings; the effect of operational risks; and the loss of key personnel. As a result, the actual future financial condition, performance and results of the Company may differ materially from the plans, goals and expectations set forth in any forward-looking statements. Any forward-looking statements made herein by or on behalf of the Company speak only as of the date they are made. Except as required by applicable law or regulation, the Company expressly disclaims any obligation or undertaking to publish any updates or revisions to any forward-looking statements contained in this presentation to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. No statement in this presentation is intended to be a profit forecast, and no statement in this presentation should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company. sannegroup.com 1
Agenda outline 2018 Interim results presentation 1. Key highlights > Dean Godwin 2. Regional performance > Dean Godwin 3. Financial review > James Ireland 4. Strategy & Outlook > Dean Godwin 5. Q&A 2
Key highlights - Dean Godwin
Continued growth momentum across the business We are a leader in an attractive market supported by compelling fundamentals Growth of alternatives and changing regulatory landscape are driving demand and new business opportunities We are building global scale and broadening our product offering through growth and selective M&A Recent acquisitions are driving increased cross-selling . 2018 deals include: Luxembourg Investment Solutions (LIS) – acquired in February 2018, which is performing well; and AgenSynd – acquired in September 2018, which adds strength-in-depth to our existing Agency Services business We have continued to invest to strengthen our capabilities and infrastructure for future growth Strong first half momentum provides confidence in full-year expectations 4
Key financial highlights We continue to build a successful global business OPERATING PROFIT 1 GROUP REVENUE UNDERLYING H1’18 H1’18 NEW BUSINESS H1’18 WINS IN H1’18 £65.9m £20.0m £11.5m H1’17 = £56.3m H1’17 = £20.9m H1’17 = £10.0m UNDERLYING PROFIT H1’18 DIVIDEND H1’18 UNDERLYING H1’18 H1’18 BEFORE TAX 1 DILUTED EPS PER SHARE £19.4m 12.2p 4.6p H1’17 = £20.3M H1’17 = 13.0p H1’17 = 4.2p 1 - Underlying results for the year have been presented after the exclusion of non-underlying items. 5
Revenue progression Transformational growth since IPO £113.2m Strong organic and inorganic growth delivered in 4 years 50% Growth momentum Post-IPO Pre-IPO £65.9m £63.8m traditionally results in a greater H2 revenue 2017 an atypical year due to £45.6m 57% FX and timing of some large new business £35.6m 54% 50% 53% Return to traditional H1 / H2 split in 2018 43% 47% 46% 2014 2015 2016 2017 2018 H1 Revenue H2 Revenue 6
Key operational highlights 2018 Interim report STRONG REVENUE GROWTH CONTINUED INVESTMENT TO ENHANCE GROUP 20% on a constant currency basis Further investment in people, processes and technology ALTERNATIVES UNDERPIN GROWTH MOMENTUM STRONG NEW BUSINESS MOMENTUM Double digit growth across APAC, EMEA and the US £11.5m annualised new business won INORGANIC GROWTH CONTINUE TO DELIVER VALUE DIVERSIFIED PRODUCT RANGE PROVIDES STABILITY Despite headwinds in Private Client and Hedge, the Acquisitions of LIS and AgenSynd so far this year Group remains on track for full year expectations 7
New business growth overview Strong organic momentum continues New business wins in the period were £11.5m (H1’17 = £10.0m) SALES Momentum building in Group’s Asia -Pacific & Mauritius £20.9m business with organic growth in the period of 5.2% and significant client wins expected to drive a higher growth rate for the full year £13.8m £10.9m £13.0m Increased levels and frequency of cross-selling £11.5m activities, including: £5.2m £7.1m ⁻ Good flow of new pipeline opportunities between NA and EMEA alternatives businesses £11.5m £10.0m £7.8m ⁻ Regional cross sell to win joint alternatives fund £6.7m admin and AIFM mandates Strong momentum in the business during the first six 2015 2016 2017 2018 months has continued post period end H1 Annualised Sales H2 Annualised sales 8
M&A update New acquisitions continue to add value Luxembourg Investment Solutions (LIS) & Compliance Partners (CP) AgenSynd Overview Leading third party AIFM authorised to deliver Leading providers of specialist agency services within the management company services to both alternative European Private Debt market. investment funds and open ended mutual funds within Deal adds new strategically important locations within the EU Europe to SANNE. Offices Luxembourg and Dublin Madrid, London and Paris Staff 80 21 Strategic Enhances offering enabling SANNE to provide Adds new strategic locations rationale integrated Fund administration, AIFMD Depositary & Brings further strength and depth to existing agency ManCo services expertise Opportunity to take service into North America, largest Builds scale in Luxembourg direct lending market in the world Strengthens Continental European new business access Integration Acquired in Feb 2018 Acquired in Sept 2018 update Dual brand strategy adopted in May 2018 9
Regional performance - Dean Godwin
Business divisions revenues & Gross margin Global business with scale across all regions 0 H1’18 Asia-Pacific & Mauritius Alternatives REVENUES: £13.7m H1’18 EMEA GROSS MARGIN: Alternatives £9.9m REVENUES: H1’18 £32.7m H1’18 North America Alternatives GROSS MARGIN: Corporate £19.7m & Private Client REVENUES: £9.7m REVENUES: £9.7m GROSS MARGIN: £4.6m GROSS MARGIN: £6.1m 11 PLEASE NOTE: Graphs shown depict % revenues splits by business area across SANNE’s global business
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