Strategic report Governance Financial statements Other information BUSINESS MODEL FOCUS AND OPERATIONAL RESILIENCE DRIVE VALUE CONTINUED Growth Cycle Economics Value creation Growth in clients Revenue Through placing clients at the heart of all we do, we have already achieved significant scale, but our continuing investment and We have a market leading, client focused, scalable platform We generate revenues based on the value of assets managed adherence to our core values will enable further growth. and through a combination of investment and application of on our platform, activity levels of our clients and a net interest our core values, we continually improve the client experience,margin on uninvested cash. Of these revenues, 62% are This will deliver long-term value creation not only for clients attracting new clients across the lifecycle and retaining our ongoing in nature, providing a high degree of profit resilience.but across a range of stakeholders including: existing client base. By providing an excellent service we attract new clients and Clients new assets, ensuring we are well positioned to grow revenues Growth in AUA across the market cycle. We listen to clients and respond by investing and championing Growing the number of clients and nurturing our relationships Costs their cause to help them secure better financial futures and to with them over their lifetime drives the long-term sustainable make their financial lives easier. growth in assets on our platform. The more happy and From our revenues, we fund the administration of the Employees engaged clients we have, the greater is the flywheel effect platform, our proposition and the business as a whole. Key to for increased new business flows through transfers of our strategy is the reinvestment back into people, technology We continue to increase the diversity and inclusiveness of our investments held elsewhere onto our platform, new lump sum and marketing, ensuring that we are always improving and workforce and engage, motivate and inspire them to deliver contributions and regular savings, particularly with regards toevolving the service and maintaining our competitive excellent client service. Rewarding careers are delivered the tax allowances within a SIPP and an ISA. advantage. We deliver all this whilst maintaining industry through investment in professional and personal development leading operating margins. and a focus on wellbeing and mental health. Growth in services We talk and listen to our clients to understand their needs Profits and dividends Investors along with those of our wider addressable market. This helps Our diversified revenue streams and scalability deliver strong We deliver long-term sustainable returns through share price to focus our reinvestment and the allocation of resources to profits which quickly convert into cash. After ensuring we appreciation and a progressive dividend policy. improve existing and develop new services, which makes us maintain a surplus of capital over and above our regulatory an ever more integral part of clients’ daily financial lives. requirement, we can then pay significant dividends to our Society shareholders. Our dividend policy is shown on page 64. We are a responsible corporate citizen, pygp supportive and leading role in both our local community and wider society. 25 Hargreaves Lansdown Report and Financial Statements 2021