Quilter Plc · LSE:QLT
Quilter — Merger or Acquisition (April 2021)
16 slides from Quilter's merger presentation, Apr 1, 2021
Slide 1: Sale of Quilter International
Quilter Basic rBand Guidelines Our brand a ssets 1 Sale of Quilter International 1 April 2021
Slide 2: Disclaimer
Disclaimer This presentation should be read in conjunction with the announcement published by Quilter plc on 1 April 2021. 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 financ
Slide 3: Strategic review concludes sale most value enhancing for shareholders
Strategic review concludes sale most value enhancing for shareholders Delighted to conclude sale terms with Utmost for c.£483m¹ Quilter International less strategically aligned to Quilter’s Quilter International’s business profile trend core UK proposition Policy count NCCF run-rate considerab
Slide 4: Capital discipline remains a key focus area
Capital discipline remains a key focus area Track record of returning value to Use of proceeds shareholders Minded to return majority of net proceeds to Culmination of a multi-year journey to be a simpler, UK centric wealth manager shareholders Minded to deliver capital Shareholder consultation
Slide 5: Delivering a higher growth, simpler, UK focused wealth manager
Delivering a higher growth, simpler, UK focused wealth manager Sale of Quilter International to Utmost, subject to Transaction consideration and use of proceeds £m shareholder, regulatory and anti-trust approvals Base consideration £460 million 5% interest charge¹ c.£23 million Achieves an attra
Slide 6: Planned path to driving operating margin to 30%+
Planned path to driving operating margin to 30%+ Current targets¹ 2020 operating margin By 2023 By 2025 2020 Aim to accelerate operating Profit 30%+ £168m² £57m³ margin improvement with before tax investment of residual 25%+ portion of net sale proceeds 5% Timing of achievement dependent on remo
Slide 7: Capital and dividend policies remain unchanged
Capital and dividend policies remain unchanged Expect to continue to be Solvency II regulated Pro forma Solvency II Capital and liquidity position enhanced immediately post-transaction¹ Quilter International to contribute to Quilter’s 2021 dividend, pro rata to earnings 77% Dividend policy r
Slide 8: Timetable
Timetable Announcement 1 April 2021 Publication of Circular and Publication of Circular and shareholder vote during Q2 2021 shareholder vote Regulatory approvals from Isle of Man, Ireland, Dubai International Financial Centre, Hong Kong and Singapore Regulatory & regulators antitrust approvals
Slide 9: Updated financial guidance
Updated financial guidance Previous guidance Updates to guidance Target NCCF growth of at least 6% of opening AuMA per Target: NCCF of 5% of opening AuMA per annum over Net client cash flow annum over medium-term from 2022 onwards, with a higher medium-term percentage growth rate from the UK Pla
Slide 10: Post-sale, Quilter will be a leaner, more focused group
Post-sale, Quilter will be a leaner, more focused group with an improved growth profile Customers Financial advice Platform and wrappers Investment solutions Third-party funds Quilter Quilter Cheviot High Net Worth Private Client Advisers £25bn Independent financial advisers bespoke solutions Quilte
Slide 11: Summary: Higher growth, simpler, UK focused wealth manager
Summary: Higher growth, simpler, UK focused wealth manager Quilter positioned front-and-centre in an industry with strong secular growth opportunities Strong foundation for our next phase of growth and efficiency Focus on leveraging the strengths and capabilities of modern, integrated wealth man
Slide 12: Q&A
Q&A Quilter
Slide 13: Appendix
Appendix 1 April 2021 Quilter
Slide 14: Transaction Detail
Transaction Detail £460m base consideration Consideration 5% interest charge from 1 January 2021 to closing, equating to £23m¹ Total consideration of £483m payable in cash on Completion¹ Locked box based on 31 December 2020 own funds of £575m Transaction Estimated total consideration subje
Slide 15: Quilter International historic financial profile
Quilter International historic financial profile Recent key financials Recent profitability driven by strong cost control £m unless stated 2018 2019 2020 Revenue Expenses Profit Alternative performance measures AuMA (£bn) 18.3 20.5 21.8 Gross sales (£bn) 1.8 2.0 1.6 Net Client Cash Flow (£bn) 0.3 0.
Slide 16: Quilter Basic r B and Guidelines Our brand a ssets
Quilter Basic rBand Guidelines Our brand a ssets 1