Quilter Plc · LSE:QLT
Quilter — UBS SA Financials Conference 2019
19 slides from Quilter's conference presentation, October 2019
Slide 1: UBS SA Financials: Disruption in UK financial services
Quilter Basic rBand Guidelines Our brand a ssets 1 UBS SA Financials: Disruption in UK financial services Etienne Burger – Strategy Director October 2019
Slide 2: Large and growing UK wealth market
Large and growing UK wealth market UK national wealth¹ Long-term savings market² Growth driven by structural (AUM, £trn) 12.4 (AUM, £trn) 4.5 trends, including: 0.5 Individual Pensions 0.3 0.5 Ind. Pensions - SIPP & PP 12% Demographics Decumulation CAGR CAGR Need for financial advice 1.4 Indiv
Slide 3: A decade of disruption: supply and demand
A decade of disruption: supply and demand Shift of savings Withdrawal of financial responsibility to the advisers post RDR individual Shift away from traditional Pension reform driving insurance based investment increased need for products changing provider Demand retirement solutions landscape Supp
Slide 4: Regulatory and fiscal changes driven disruption
Regulatory and fiscal changes driven disruption Provides customers with opportunity for consolidation and flexibility to manage retirement assets Pension reform Demand and complexity driving need for advice Increased longevity of client relationships for wealth managers versus compulsory annui
Slide 5: Fiscal changes driving complexity, client behaviour and need for advice
Fiscal changes driving complexity, client behaviour and need for advice Annual pension allowance ISA annual allowance £’000 Allowance £’000 tapered for over Junior ISA CAGR £150k earners 255 -16% ISA 235 245 20.0 20.0 CAGR 50 50 50 +11% 40 40 40 40 40 15.0 15.2 15.2 2008/09 2009/10 2010/11 2011/12 2
Slide 6: Advice: shift in how advisers serve their clients
Advice: shift in how advisers serve their clients Regulatory and market changes driving better quality of advice for fewer clients Adviser average client portfolio¹ Adviser trend to serve fewer active clients: – Change in compensation model from commission to fees Number of clients % Active client
Slide 7: Platform: Savings and investments consolidating onto Platforms, particularly pensions
Platform: Savings and investments consolidating onto Platforms, particularly pensions Pensions and investments Platforms play an important role in modern wealth Pension is the ‘anchor’ product consolidating onto platforms management Total UK platform market Fund platforms by product AUA £bn1 AUA £bn
Slide 8: Investment Solutions: continued growth in outcome-based, client-focussed solutions
Investment Solutions: continued growth in outcome-based, client-focussed solutions Global AuM by product split1 UK Retail Funds growth2 Typical 40-85% mixed asset fund3 % / US$ trn £bn Asset Allocation% Discretionary portfolio service Dedicated investment manager to 38 74 1,420 design bespoke port
Slide 9: Business models have adapted to evolving value chain
Business models have adapted to evolving value chain Move from ‘push’ to ‘pull’ economics Where Quilter plays Investment Asset management Product/wrapper Advisers Customers solutions Product driven sales: Dictated by insurance company and ‘pushed’ via controlled distribution ‘Old word’ Distribution
Slide 10: Quilter adapted its business model
Quilter adapted its business model Our journey to deliver a modern UK focussed wealth manager UK & European Modern Life Assurer UK-focussed wealth manager Our transition to becoming ‘one Quilter’ Italy Sold European life books, single strategy Switzerland Acquired and built Advice Network & Nation
Slide 11: Key themes from last decade
Key themes from last decade UK remains a large and growing wealth market Regulatory and fiscal change has had a material impact Complexity driving continued and growing need for advice Platforms playing key role for advisers and customers Investment solutions growth and core to wealth mana
Slide 12: 2019 Interim results
2019 Interim results John-Paul Crutchley – Head of IR
Slide 13: Executive summary: solid performance in H1 2019
Executive summary: solid performance in H1 2019 Key Performance Indicators from continuing operations including QLA H1 2019 H1 2018 ∆ Financial: Adjusted profit growth of 5% to £115m NCCF/opening AuMA2 % 1 6 (5pp) Integrated flows2 £bn 1.3 2.8 (54%) Adjusted diluted earnings per share of 5.5p in
Slide 14: Resilient performance in H1 2019
Resilient performance in H1 2019 NCCF1 Average AuMA2 Revenue2 £bn £bn £m Integrated Revenue 2.8 1.3 - 57 57 flows (£bn) margin (bps) 9.1 114.5 114.4 -90% 3% 3.0 385 395 0.3 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 Market movement contribution Expenses2 Adjusted profit before tax2 Adjusted dil
Slide 15: H1 2019 highlights: financial, strategic and operational progress
H1 2019 highlights: financial, strategic and operational progress Financial Strategic Operational Solid financial performance Investing in advice PTP progressing well Charles Derby Group & Lighthouse plc Adjusted profit up 5% to £115m in a acquisitions consolidate our position UK Platform upgrade we
Slide 16: Quilter investment case
Quilter investment case A unique combination of capabilities, scale and market positions 1 Full service wealth manager providing choice and delivering good customer outcomes Leading positions across one of the world’s largest wealth markets with strong structural growth 2 drivers Multi-channel propo
Slide 17: Disclaimer
Disclaimer This presentation should be read in conjunction with the announcement published by Quilter plc on 5 August 2019. 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 finan
Slide 18: Quil t er Basic r B and Guidelines Our b r and a ss
Quilter Basic rBand Guidelines Our brand a ssets 1
Slide 19: 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