Quilter Plc · LSE:QLT
Quilter — H1 2018 Earnings Presentation
21 slides from Quilter's earnings presentation, Aug 8, 2018
Slide 1: Interim results 2018
Quilter Basic rBand Guidelines Our brand a ssets 1 Interim results 2018 8 August 2018
Slide 2: Disclaimer
Disclaimer This presentation should be read in conjunction with the RNS announcement published by Quilter plc on 8 August 2018. This presentation may contain certain forward-looking statements with respect to certain Quilter plc’s plans and its current goals and expectations relating to its future f
Slide 3: Presentation agenda
Presentation agenda Business review Paul Feeney, CEO Financial review Tim Tookey, CFO Concluding remarks Paul Feeney, CEO Q&A 3
Slide 4: Record profit and substantial returns
Record profit and substantial returns Solid NCCF performance of £3.0bn, 6%1 of opening AuMA (excl. Quilter Life Assurance) Strong growth in integrated flows, up 17% to £2.8bn1 Good adjusted profit growth, up 16% to £110m; EPS up 25% Successfully listed as Quilter plc, Platform Transformation Program
Slide 5: Continued delivery of positive net flows
Continued delivery of positive net flows FTSE 1001 NCCF excl. Quilter Life Assurance2 +17% Integrated flows Integrated flows 2.3 £2.4bn3 £2.8bn3 2.0 1.9 1.9 1.5 1.4 1.3 1.2 1.2 1.0 1.0 1.0 0.7 0.7 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018
Slide 6: NCCF – significant growth in integrated flows
NCCF – significant growth in integrated flows £bn H1 2018 H1 2017 ∆ NCCF (annualised)/Op. AuMA (excl. Quilter Life Assurance) Quilter Investors 1.8 1.5 20% of 6% exceeding our target of 5% Quilter Cheviot 0.5 0.6 (17%) Strong growth in Advice & Wealth Management driven by Advice & Wealth Managem
Slide 7: Advice and Wealth Management performance
Advice and Wealth Management performance RFP #s Closing AuM £bn +13% +5% 43.7 41.7 1.6 1.8 1.8 Productivity (£m) +2% +1% 24.1 Quilter Cheviot 23.6 1,582 1,561 1,590 +9% Quilter Investors 16.9 18.4 Quilter Financial Planning 1.2 1.2 H1 2017 YE 2017 H1 2018 YE 2017 H1 2018 Revenue £m Revenue margin
Slide 8: Continued strong long-term investment performance above benchmark
Continued strong long-term investment performance above benchmark Discretionary AuM Quilter Investors’ performance AuM Quilter Cheviot PCI Quartile Ranking £24.1bn £18.4bn % of weighted AuM above market comparator ARC Private Client Index, Q1 2018 85% Performance 1Y 3Y 5Y 10Y quartile 75% 72% ARC PC
Slide 9: Wealth Platforms' performance
Wealth Platforms’ performance Closing AuA1 £bn +1% Quilter Wealth Solutions: 84.8 86.0 – AuA up 4%; +4% 50.2 52.3 Quilter Wealth Solutions – NCCF/Opening AuA 8% – Revenue up 10% 19.3 -1% 19.2 Quilter International Quilter Life Assurance Increased revenue driven by higher average AuA of £83.2bn 1
Slide 10: Platform Transformation Programme on track for 2018/2019 delivery
Platform Transformation Programme on track for 2018/2019 delivery Costs in line with previous stated levels of £120-160m Programme Requirements Code delivered to Test and establishment and and solution Soft launch Migration testing implement plan validation design Jun – Jul 2017 Jul – Nov 2017 Nov 2
Slide 11: Financial review
Financial review Tim Tookey 8 August 2018
Slide 12: Operational performance
Operational performance NCCF (excl. Quilter Life Assurance) £bn AuMA Revenue Integrated £bn £m 2.4 2.8 Revenue flows (£bn) +2% 56 57 margin (bps) -12% 114.4 116.5 +11% 3.4 3.0 385 346 H1 2017 H1 2018 YE 2017 H1 2018 H1 2017 H1 2018 Expenses Adjusted profit before tax Adjusted EPS £m £m Pence +10% Op
Slide 13: Advice and Wealth Management
Advice and Wealth Management £m H1 2018 H1 2017 ∆ Revenue margin increase due to mix Revenue 181 148 22% Growth in advice fees (up 17% to £41m) Expenses (134) (116) (16%) Adjusted profit 47 32 47% Expense increase of 16% primarily due to expansion of the Private Clients Adviser network and the
Slide 14: Wealth Platforms
Wealth Platforms £m H1 2018 H1 2017 ∆ Revenue margin decrease driven by mix Revenue 203 198 3% Decrease in expenses of c.£4m includes timing Expenses (120) (124) 3% benefit of technology spend Adjusted profit 83 74 12% Strong adjusted profit reflects higher revenue for Quilter Wealth Solutions
Slide 15: Strong NCCF and AuMA growth
Strong NCCF and AuMA growth AuMA evolution 56 57 Revenue £bn margin (bps) 6%1 9%1 0%2 9%2 116.5 114.4 4.5 (1.5) (0.8) (0.1) Quilter Life 8.6 14.5 (2.7) 15.3 Assurance3 (1.3) 1.3 10.3 98.2 £3.0bn NCCF excl. Quilter Life Quilter Life 15.4 Assurance Assurance3 £7.6bn NCCF excl. Quilter Life Assurance 1
Slide 16: Disciplined expense management continued
Disciplined expense management continued £m Operating margin 27% 29% 275 FY expenses context 8 5 FSCS levy in H1 only 11 Recurring Investment 251 Reversal of timing Managed £6m and Separation and other, net £2m differences standalone Build out of Quilter Variable (as guided) incentives incl. I
Slide 17: Strong solvency and cash position
Strong solvency and cash position SII ratio % Holding company cash at 30 June 2018 of (18%) 195% 41% (2%) 3% £587m Expected reduction of £221m for special 154% 17% interim dividend Provides liquidity for committed strategic programme including UK Platform Transformation Programme Includes co
Slide 18: Concluding remarks
Concluding remarks Paul Feeney 8 August 2018
Slide 19: Our focus for the second half and beyond
Our focus for the second half and beyond Focus in H2 2018 H1 2018 achievements Detailed planning to identify and evaluate Optimisation Planning underway options Key work streams mobilised Update market with FY 2018 H1 2018 achievements Focus in H2 2018 Wealth Platform launch Strong profi
Slide 20: Record profit and substantial returns
Record profit and substantial returns Solid NCCF performance of £3.0bn, 6%1 of opening AuMA (excl. Quilter Life Assurance) Strong growth in integrated flows, up 17% to £2.8bn1 Good adjusted profit growth, up 16% to £110m; EPS up 25% Successfully listed as Quilter plc, Platform Transformation Program
Slide 21: Q&A
Q&A 8 August 2018