Quilter Plc · LSE:QLT
Quilter — Non-Deal Roadshow (June 2019)
35 slides from Quilter's roadshow presentation, June 2019
Slide 1: UBS investor roadshow
Quilter Basic rBand Guidelines Our brand a ssets 1 UBS investor roadshow London – June 2019
Slide 2: Today’s schedule
Today’s schedule 10:15 Welcome and introduction Paul Feeney 11:00 Business deep-dive: Quilter Cheviot Andy McGlone 12:00 Business deep-dive: UK Platform and Quilter Life Assurance Steven Levin 13:00 Business deep-dive: Quilter Investors Paul Simpson 13:45 Business deep-dive: Quilter’s advice proposi
Slide 3: Welcome and introduction
Welcome and introduction Paul Feeney
Slide 4: 2018: A landmark year
2018 : A landmark year Quilter plc successfully listed on LSE and JSE Single Strategy asset management business sold and 12.0p special dividend paid Significant progress on Platform Transformation Programme; soft launch now underway FCA investigation into treatment of long-standing clients of closed
Slide 5: Our focus for 2019 and beyond
Our focus for 2019 and beyond 4 2018 achievements Focus in 2019 Phase 1 planning Mobilise Phase 1 Optimisation complete initiatives Early savings achieved Protect PTP-related through cost management areas 3 2018 achievements Focus in 2019 Wealth Strong underlying UK Migration of PTP Plat
Slide 6: Quilter’s multi-channel advice-led model
Quilter’s multi-channel advice-led model An open, transparent, full-service model serving customers across the wealth spectrum High Net Worth Affluent Mass Affluent Open market, financial advisers Distribution Quilter Private Client Quilter Financial Planning Quilter Financial Advisers Advisers Weal
Slide 7: Quilter Cheviot
Quilter Cheviot Andy McGlone
Slide 8: Different customer needs require different solutions
Different customer needs require different solutions Solution Description Dedicated investment manager to design bespoke portfolios Discretionary portfolio Consider each client’s personal investment objectives, attitude and risk tolerance service Service for clients with more than £200k to inv
Slide 9: Investment performance: Quilter Cheviot
Investment performance: Quilter Cheviot Cumulative returns Quilter Cheviot PCI performance vs. peers, as at 30 September 2018 40% Relative +1.6% Relative +2.2% 30% Relative +2.8% 3 year 20% 10% 0% Balanced Steady Growth Equity Risk 50% Relative +2.6% Relative +2.7% 40% Relative +3.4% 5 year 30% 20%
Slide 10: UK Platform and Quilter Life Assurance
UK Platform and Quilter Life Assurance Steven Levin
Slide 11: UK Platforms: Attractive market with an increasingly important role
UK Platforms: Attractive market with an increasingly important role Pensions and investments Platforms play an important role in modern wealth management consolidating onto platforms Total UK platform market AUA £bn1 594 For Customers For Advisers Quilter’s Platform CAGR +14% Holdings in one place
Slide 12: Our integrated offering drives increasing value
Our integrated offering drives increasing value Quilter Wealth Solutions NCCF¹,² Quilter Wealth Solutions AuMA 2017: 9% 2018 2018 £3.1bn £49.9bn 11% 35% Source 2017: 27% 65% 89% Quilter Restricted advisers Third party independent advisers 2018 2018 £3.1bn £49.9bn 19% 2017: 17% Destination 48% 52% 81
Slide 13: New UK Platform: strong progress made; in soft launch phase
New UK Platform: strong progress made; in soft launch phase 1 2 3 System with full Test and adviser Soft launch implement functionality complete Complete for Soft Launch Entered Early Summer 2019 Migration phases commence Ongoing for future phases early Autumn 2019 High quality delivery is of utmost
Slide 14: Quilter Investors
Quilter Investors Paul Simpson
Slide 15: Strong growth opportunities driven by evolving investor needs and distribution
Strong growth opportunities driven by evolving investor needs and distribution Strong growth in investment Strong growth in Quilter Investors’ assets and revenues solutions forecast Forecast global asset management flows AuM NCCF Revenue and revenue margin Percent of total AuM1 £bn £bn Revenue £m bp
Slide 16: Different customer needs require different solutions
Different customer needs require different solutions Solution Description Dedicated investment manager to design bespoke portfolios Discretionary portfolio Consider each client’s personal investment objectives, attitude and risk tolerance service Service for clients with more than £200k to inv
Slide 17: Different customer needs require a broad range of solutions
Different customer needs require a broad range of solutions AuM International Decumulation Accumulation MPS 31 March 2019, £bn WealthSelect (Managed Creation Compass Generation Cirilium Portfolio Service) £1.0bn £0.6bn £0.4bn £9.9bn £5.9bn Narrower range of Broad range of underlying underlying instr
Slide 18: Investment performance: Quilter Investors
Investment performance: Quilter Investors Cirilium Wealth Select Performance vs Investment Association sector averages Performance vs Investment Association sector averages Cumulative returns: at 31 March 2019 Cumulative returns: at 31 March 2019 40 Relative (5.3) Relative +3.9 Relative +4.7 50 30 R
Slide 19: Quilter Financial Planning
Quilter Financial Planning Andy Thompson
Slide 20: Evolution of the advice model
Evolution of the advice model Quilter RFPs Quilter Investors’ AuM Total £17.8bn FCA focus on value for money Lighthouse +50% +20% +81% Advice automation Total and technology £9.8bn 1,621 Pensions freedom +217% 1,350 £9.5bn from Quilter Financial Planning £3.0bn from Quilter Constrained supply of Fin
Slide 21: Advice business: Strategic priorities
Advice business: Strategic priorities Delivering an excellent customer experience through controlled distribution The customer sits at the heart of our strategy and demonstrable delivery of good customer outcomes remains our focus The provision of advice is one of the core foundations of Quilter
Slide 22: The Lighthouse opportunity
The Lighthouse opportunity High Net Worth Affluent Mass Affluent Open market, financial advisers Distribution Quilter Private Client Quilter Financial Planning Quilter Financial Advisers Advisers LighthouseCarrwood Lighthouse Communities Lighthouse Financial Advice Wealth Platforms solutions Investm
Slide 23: Optimisation
Optimisation Karin Cook
Slide 24: Optimisation: A phased, multi-year programme
Optimisation: A phased, multi-year programme Laying the path to Quilter becoming the best version of itself that it can be Phase 1: Phase 2: Operational efficiencies Streamline Widen scope of efficiency plan to Efficiency initiatives to deliver streamline the business post-PTP improvements in operat
Slide 25: Optimisation focussed on addressable cost base
Optimisation focussed on addressable cost base Total costs Addressable costs Contribution to Optimisation: A phased, multi-year approach optimisation 555 18 Phase: 1. Operational efficiencies 105 • Efficiency initiatives to deliver Programme improvements in operational of activity: performance 120 T
Slide 26: Financials and closing remarks
Financials and closing remarks Mark Satchel
Slide 27: FY18 Results executive summary: Strong performance in 2018
FY18 Results executive summary: Strong performance in 2018 Key Performance Indicators 2018 2017 ∆ Strong adjusted profit growth, up 11% Financial: Adjusted diluted earnings per share of NCCF/opening AuMA1 % 5 9 (4) pp 12.3p up 15% Integrated flows1 £bn 4.7 5.2 (10%) Recommended final dividend
Slide 28: Operational performance
Operational performance Strong performance in 2018 NCCF (excl. Quilter Life Assurance) £bn AuMA Revenue Integrated £bn £m 5.2 4.7 Revenue flows (£bn) -4% 56 57 margin (bps) -38% +8% 114.4 109.3 7.6 728 788 4.7 2017 2018 2017 2018 2017 2018 Expenses Adjusted profit before tax Adjusted diluted EPS £m
Slide 29: Capital management philosophy
Capital management philosophy Current year dividend On-going London office relocation cash needs Group capital requirements Working capital & interest Investing in the growth of the business Investing organically Platform Transformation Programme Optimisation programme Capital allocati
Slide 30: Appendix
Appendix
Slide 31: Updated financial guidance
Updated financial guidance Guidance to market at time of Listing Updates to guidance Target: NCCF of 5% of opening AuMA (excluding QLA) per No change to target but cautious on 2019 given market Net client cash flow annum over medium-term conditions, and economic and political uncertainty Optim
Slide 32: Disclaimer
Disclaimer This presentation should be read in conjunction with the Results announcement published by Quilter plc on 12 March 2019. This presentation has been prepared by Quilter plc (the “Company”) in connection with the recommended cash offer by Intrinsic Financial Services Limited (“Intrinsic”) f
Slide 33: Disclaimer continued
Disclaimer continued In light of these risks, uncertainties and assumptions, the events in the forward looking statements may not occur. Forward looking statements involve inherent risks and uncertainties. Other events not taken into account may occur and may significantly affect the analysis of the
Slide 34: Quil t er Basic r B and Guidelines Our b r and a ss
Quilter Basic rBand Guidelines Our brand a ssets 1
Slide 35: Contacts
Contacts Investor enquiries John-Paul Crutchley UK +44 207 002 7016 john-paul.crutchley@quilter.com Keilah Codd UK +44 207 002 7054 keilah.codd@quilter.com Media enquiries Jane Goodland UK +44 77 9001 2066 jane.goodland@quilter.com Tim Skelton-Smith UK +44 78 2414 5076 tim.skelton-smith@quilter.com