Quilter Plc · LSE:QLT
Quilter — Non-Deal Roadshow (December 2024)
30 slides from Quilter's roadshow presentation, December 2024
Slide 1: Sell side presentation
Sell side presentation December 2024 2024
Slide 2: Summary: Quilter is a high quality, scaled and diversified business
Summary: Quilter is a high quality, scaled and diversified business Q3 Flows: Out-performing peers in HNW and across both Affluent channels Applying like for like peer multiples to Quilter implies upside potential from current rating Adviser review is progressing to plan, but timing of resolution re
Slide 3: Business Positioning
Business Positioning Quilter
Slide 4: Competitor landscape
Competitor landscape HNW Affluent IFA Channel Quilter Channel Discretionary investment management and advice Advice, platform administration and investment Platform administration and investment solutions solutions c.£65bn Assets under administration c.£30bn Assets under Advice c.£29bn Funds under M
Slide 5: Wealth management multiples – Peer weighted QLT multiple c.17x
Wealth management multiples – Peer weighted QLT multiple c.17x • Quilter outperforms: Platforms, DFMs and VI peers on flow momentum in 2024 • Quilter MPS demonstrates similar growth and investment performance to Tatton Quilter Pure Play Platforms Broader Platform Businesses DFMs VI Peers Focussed As
Slide 6: Flows
Flows Quilter
Slide 7: Quarterly Net Flows 2024 vs 2023
Quarterly Net Flows 2024 vs 2023 2024: UK Platform 2024: High Net Worth £m £m Net/opening +4% Net/opening +5% +6% +7% +1% +0.2% AuA1 AuMA1 1,455 284 1,164 1,048 93 14 Q1 Q2 Q3 Q1 Q2 Q3 2023: UK Platform 2023: High Net Worth £m £m Net/opening Net/opening +4% +2% +2% +1% (0.2)% (2)% AuA1 AuMA1 70 591
Slide 8: Quilter plc: Net inflow trend
Quilter plc: Net inflow trend • Quarter on quarter improvement in net flows over 2024 • Third quarter net flows broadly double of the first quarter Quilter weekly net inflows by Quarter 2024 £000
Slide 9: HNW
HNW Quilter
Slide 10: HNW net inflows vs peers
HNW net inflows vs peers • Sequential quarterly improvement in net flows over 2024 (excl notable client account loss in Q2) • Third quarter 2024 strongest quarter for new business since Q3 2021 Net Flows £m 400 300 200 100 0 -100 -200 -300 -400 -500 -600 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Qui
Slide 11: Platform
Platform Quilter
Slide 12: UK Platform Q3 YTD inflows: 2024 vs 2023
UK Platform Q3 YTD inflows: 2024 vs 2023 • Significant quarter on quarter improvement in net Platform inflows over 2024 • Strong YoY increase in new business flows underpinned by improved market share and YoY market growth 2023 Q3 YTD 2024 Q3 YTD £m £m YoY (31%) YoY +184% +1% +46% change change Net/
Slide 13: IFA flows only - Peer Platform comparison
IFA flows only - Peer Platform comparison Gross inflows YoY Chng Gross Outflows YoY Chng £bn QLT +76% £bn QLT -4% 2.5 AJB +33% 2.5 AJB +38% IHT +36% IHT +16% 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Q1 23 Q2 23 Q3 23 Q4 24 Q1 24 Q2 24 Q3 24 Q1 23 Q2 23 Q3 23 Q4 24 Q1 24 Q2 24 Q3 24 Quilter IFA platfo
Slide 14: IFA flows only - Peer Platform comparison (rebased to Q1 2023 = 100)
IFA flows only - Peer Platform comparison (rebased to Q1 2023 = 100) Gross inflows Gross Outflows £bn £bn 200 200 150 150 100 100 50 50 0 0 Q1 23 Q2 23 Q3 23 Q4 24 Q1 24 Q2 24 Q3 24 Q1 23 Q2 23 Q3 23 Q4 24 Q1 24 Q2 24 Q3 24 Quilter IFA platform AJB Advised channel Transact Quilter IFA platform AJB A
Slide 15: Continued improvement in net flows from other IFA Platforms
Continued improvement in net flows from other IFA Platforms Quilter Platform IFA channel net transfer trends by source of funds² Q3 2023 vs Q3 2024 Q3 2023 Q3 2024 Peer platforms Consolidators 15
Slide 16: Step change in IFA net Platform flows
Step change in IFA net Platform flows Initiatives driving year-on-year improvement • Refocused sales incentives on deepening relationships with existing advisers on Platform • Reviewed sales segmentation model • Changes to leadership and sales team structures Cumulative Platform weekly IFA net flows
Slide 17: Quilter Channel
Quilter Channel Quilter
Slide 18: Quilter channel gross and net inflows vs peers
Quilter channel gross and net inflows vs peers Gross inflows £bn 5.0 4.0 Quilter SJP 3.0 True Potential 2.0 1.0 0.0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Net inflows £bn 2.0 Net flow/opening AuMA1 1.5 14% 2% 5% Quilter SJP 1.0 True Potential 0.5 0.0 18 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 1
Slide 19: Solutions
Solutions Quilter
Slide 20: Wealth Select MPS growth vs Tatton
Wealth Select MPS growth vs Tatton Average Average Quilter MPS c.30 bps revenue Tatton MPS revenue c.21 bps2 margin margin £bn £bn 18 c.£18bn 20 c.£18.5bn 16 Cagr+32% Cagr +26% 14 15 12 10 10 8 6 4 5 2 0 0 Dec-20 Dec-21 Dec-22 Dec-23 Sep-24 1 Sep-20 Sep-21 Sep-22 Sep-22 Sep-24 WS -Other WS - Blend M
Slide 21: Principal solutions – Mirroring industry trends towards MPS and Passives
Principal solutions – Mirroring industry trends towards MPS and Passives Cirilium Active Cirilium Blend Passive £bn £bn 10,000 10,000 +19% y-o-y Cagr -19% Fund of funds 8,000 (30)% y-o-y 8,000 c.£7bn solutions Cagr +17% 6,000 6,000 Revenue margins Revenue margins 4,000 c.£4bn c.66bps 4,000 c.27-45bp
Slide 22: Industry
Industry Quilter
Slide 23: Industry insight: advised Platform sales trends
Industry insight: advised Platform sales trends Source: The Lang Cat 23
Slide 24: Banks cash ISAs vs Advised Platform Industry ISA flows
Banks cash ISAs vs Advised Platform Industry ISA flows Impact of interest rate hikes Post Covid investing LT Average Source: BoE Statistics, Fundscape – note the above excludes D2C industry flows 24
Slide 25: Guidance Reminder
Guidance Reminder Quilter
Slide 26: Group targets and H2 2024 guidance
Group targets and H2 2024 guidance FY 2024 guided Group targets Group target ➢ c.4-5% of opening AuMA per annum as markets normalise, and Net flows ➢ Unchanged aspire to build momentum further ➢ High Net Worth managed assets stable around 70 bps Revenue ➢ Affluent managed assets – around mid 30 bps,
Slide 27: Below the line costs and other items
Below the line costs and other items Below the line costs: Simplification costs: • c.£28m for 2024, c.£15m for 2025 and c.£12m for 2026/2027. Intangible amortisation: • Reducing from c.£40m in 2024 to c.£18m in 2025, then c.£12m from 2026. Ongoing Advice Evidence review: • Cost of skilled person rev
Slide 28: Summary
Summary Quilter
Slide 29: What differentiates Quilter?
What differentiates Quilter? Balanced business mix covering the entire UK wealth spectrum Dual channel: strong market positions in IFA and restricted channels Open, unbundled business model with transparent pricing All products/ services available to our advisers and IFAs – ensures they are market c
Slide 30: Disclaimer
Disclaimer This presentation may contain forward-looking statements with respect to certain Quilter plc’s plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty bec