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Objectives and strategy

Our aim is to create a leading asset managing business which builds valuable relationships with our customers around the world and generates progressive and sustainable returns for our shareholders.

Our corporate purpose:

To generate sustainable, high-quality returns for our shareholders

Our mission:

To build valuable customer relationships by helping customers grow and protect their assets

Our vision:

We will help customers around the world feel confident about their future wealth and well-being

Our strategic objectives and how we performed against them are illustrated below. Further detail on how our businesses performed can be found in Business segment performance. Our strategic objectives and ultimately our ability to generate value for our shareholders may be subject to financial risks. Principal risks and our risk management approach are discussed in more detail in Risk management.


Create capital efficient innovative solutions Open new routes to markets Leverage investment management expertise and performance Drive for operational excellence
Strategy

Manage our existing book of business effectively, write profitable new business in a capital efficient manner, reduce unit costs and implement operational efficiencies through the effective use of technology.

Performance
Looking ahead

Deliver capital efficiency through the sale of capital-lite products, increase cash generation and grow RoEV.

Strategy

Develop and diversify distribution through enhancing relationships in existing channels, developing new relationships and exploring new markets.

Performance

UK distribution by channel

UK distribution by channel. 2005 IFA: 79.1%; Direct: 5.9%; Consultant Actuaries: 8.3%; Banks/New Channels: 6.7%; 2006 IFA: 66.3%; Direct: 13.3%; Fidelity: 3.3%; Consultant Actuaries: 12.3%; Banks/New Channels: 4.8%; 2007 IFA: 59.7%; Direct: 9.3%; Fidelity: 3.9%; Consultant Actuaries: 20.5%; Banks/New Channels: 6.6%; 2008 IFA: 52.8%; Direct: 11.0%; Fidelity: 3.5%; Consultant Actuaries: 23.7%; Banks/New Channels: 9.0%
UK distribution by channel key

Asia Pacific PVNBP

Asia Pacific PVNBP. 2005: £101m; 2006: £206m; 2007: £266m; 2008: £495m
Looking ahead

Broaden and deepen customer relationships through partners and direct routes.

Strategy

Grow assets under management (AUM) and administration (AUA) through our active investment approach and strong investment record.

Performance

Group AUA

Group AUA. 2005: £137.7bn; 2006: £153.6bn; 2007: £169.0bn; 2008: £156.8bn

Standard Life Investments:
Multi-Asset Manager of the Year – 2008

Standard Life Investments third party AUM

Standard Life Investments Third party AUM. 2005: £29.1bn;  2006: £38.5bn; 2007: £47.7bn; 2008: £45.5bn
Looking ahead

Build further on our diverse sources of investment performance.

Strategy

Continue to streamline our operational processes and enhance efficiency to reduce costs and keep improving the services we provide.

Performance

EEV efficiency gains

EEV efficiency gains. 2005: £336m; 2006: £95m; 2007: £109m; 2008: £64m

Group Corporate Centre costs

Group corporate centre costs. 2005: £58m; 2006: £89m; 2007: £57m; 2008: £50m


We announced our Continuous Improvement Programme in 2007 and promised to deliver £100m of efficiencies by the end of 2009. In 2008 we met the £100m target one year earlier than planned and exceeded it by £3m.
Looking ahead

Following completion of our Continuous Improvement Programme, we have launched the next phase of efficiency savings which aims to generate a further £75m of savings over the next two years.

1 2005 and 2006 results are shown on a pro forma basis.
2 NBS margin for 2005 and 2006 and PVNBP sales for 2005 have not been restated to include mutual fund sales as covered business. 2007 numbers have not been restated to reflect inclusion of Sigma mutual funds.
NBS margin for all years is calculated excluding Asia Pacific.
3 The new business PVNBP sales are different from those previously published in the full year new business press release issued on 28 January 2009, as they incorporate year end non-economic assumption changes.
4 2007 PVNBP has been restated to reflect the inclusion of Sigma mutual funds. The 2008 impact is £88m (2007: £116m)

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© 2009 Standard Life

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Standard Life plc, registered in Scotland (SC286832), Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life group includes Standard Life plc and its subsidiaries. Telephone +44 (0)131 225 2552. Calls may be recorded/monitored and call charges may vary.

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