Quilter Plc · LSE:QLT
Quilter — Investor Presentation (June 2023)
32 slides from Quilter's investor presentation, Jun 7, 2023
Slide 1: UBS Investor Presentation
Quilter Basic rBand Guidelines Our brand a ssets 1 UBS Investor Presentation 7 June 2023
Slide 2: Disclaimer
Disclaimer 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 financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncerta
Slide 3: Agenda
Agenda Time Session Presenter 13:00-13:30 Welcome Steven Levin 13:30-14:00 Distribution Steve Gazard 14:00-14:25 Proposition Marcus Brookes 14:25-14:35 Break 14:35-15:00 High Net Worth Andy McGlone 15:00-15:30 Finance and operations Mark Satchel Karin Cook Hanlie van Staden 3
Slide 4: Steven Levin, CEO
Steven Levin, CEO Quilter
Slide 5: Industry context – secular growth with cyclical challenges
Industry context – secular growth with cyclical challenges UK Wealth market has strong secular growth potential Market headwinds in 2022 – expect gradually improving sentiment over 2023 Economic downturn, higher interest rates, cost-of-living challenges have impacted flows – expect 2023 to be a year
Slide 6: Business reshaped towards a UK centric focus since Listing
Business reshaped towards a UK centric focus since Listing Refocused on High Net Worth and Affluent segments Market leading platform built on robust technology Two scale distribution channels Capital discipline Significant cost reduction programmes c.£1bn returned to shareholders since Listing 6
Slide 7: Focus areas to drive fundamental business improvement
Focus areas to drive fundamental business improvement Building Distribution Enhancing Proposition Driving Efficiency Increasing Profitability 7
Slide 8: What we are driving for
What we are driving for Operating margin 25% in 2025 30% longer term goal Net flows / opening AuMA Incremental improvement in 2023, targeting 2%+ flows 4-5% net flows / opening AuMA when markets normalise, and aspire to build momentum further 8
Slide 9: Distribution Stephen Gazard
Distribution Stephen Gazard
Slide 10: Focus areas to drive business improvement
Focus areas to drive business improvement Building Distribution Enhancing Proposition Driving Efficiency Increasing Profitability 10
Slide 11: Quilter: strategically well positioned across the UK wealth industry
Quilter: strategically well positioned across the UK wealth industry Three broadly equal revenue streams from our three core franchises High Net Worth c.£200m Affluent c.£400m Strategic focus: High Net Worth Integrated Advice Enhance Quilter advice proposition to Discretionary investment Advice, p
Slide 12: Focus on driving Quilter channel growth and adviser productivity
Focus on driving Quilter channel growth and adviser productivity Gross sales Quilter channel £m Adviser productivity – 2.6 2.4 2.3 2.3 annualised gross sales per 2.7 Quilter adviser £m 3rd party 1,050 platforms Quilter Platforms 916 3.8% 217 Quilter channel gross including HNW 857 838 844 140 12 mar
Slide 13: IFA channel growth strategy: broaden, deepen, retain
IFA channel growth strategy: broaden, deepen, retain Accessible market opportunity by targeted adviser firm “Retain”: Core supporters Firms’ market flows Smaller IFAs where Quilter is principal Platform £bn, annually Service well in a cost efficient manner 15 “Deepen”: Large, existing supporters
Slide 14: An integrated approach to adviser relationships
An integrated approach to adviser relationships Differentiated ability to support advisers across the market unique to Quilter Quilter advice firm Potential eventual exit via practice buyout Adoption of Quilter brand and marketing Regulatory compliance outsourced to Quilter Strategic partner Adviser
Slide 15: Investment Propositions Marcus Brooks
Investment Propositions Marcus Brooks
Slide 16: Focus areas to drive business improvement
Focus areas to drive business improvement Building Distribution Enhancing Proposition Driving Efficiency Increasing Profitability 16
Slide 17: Our solutions strategy to meet client needs
Our solutions strategy to meet client needs Advice Platform Investment Fee to client Higher Potential 1. Premium product growth Discretionary portfolio Cirilium Active service 2. Price/value trade-off WealthSelect Managed 3. Value-based Cirilium Blend portfolio solutions service WealthSelect Income
Slide 18: High Net Worth Andy McGlone
High Net Worth Andy McGlone Quilter
Slide 19: Focus areas to drive business improvement
Focus areas to drive business improvement Building Distribution Enhancing Proposition Driving Efficiency Increasing Profitability 19
Slide 20: Quilter: strategically well positioned across the UK wealth industry
Quilter: strategically well positioned across the UK wealth industry Three broadly equal revenue streams from our three core franchises High Net Worth c.£200m Affluent c.£400m Strategic focus: Improving productivity High Net Worth Integrated Advice Discretionary investment Advice, platform adminis
Slide 21: Our solutions strategy to meet client needs
Our solutions strategy to meet client needs Advice Platform Investment Fee to client Higher Potential 1. Premium product growth Discretionary portfolio Cirilium Active service 2. Price/value trade-off WealthSelect Managed 3. Value-based Cirilium Blend portfolio solutions service WealthSelect Income
Slide 22: High Net Worth – Q1 2023 AuMA and flows
High Net Worth – Q1 2023 AuMA and flows Gross flows (£m) Net flows (£m) 690 264 627 248 Quilter 120 572 222 519 117 74 Quilter 99 61 489 67 55 158 182 IFA incl. Direct 570 510 187 70 498 IFA incl. Direct 165 167 138 452 307 84 20 -14 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4
Slide 23: Finance and Operations
Finance and Operations Mark Satchel Karin Cook Hanlie van Staden
Slide 24: Focus areas to drive business improvement
Focus areas to drive business improvement Building Distribution Enhancing Proposition Driving Efficiency Increasing Profitability 24
Slide 25: Track record of disciplined expense management through the cycle
Track record of disciplined expense management through the cycle Driving efficiency: Focussed on delivering 2025 (and beyond) operating leverage targets Average 2023 market levels to date broadly in line with expectations but flow environment still challenging Inflation easing but still runnin
Slide 26: Delivering the next stage of efficiency improvements
Delivering the next stage of efficiency improvements Optimisation (2019 launch): Benefit – £65m¹ Simplification (2021 launch): Benefit – £45m £45m cost saves £15m cost saves £50m cost saves 2019 2020 2021 2022 2023 2024 Phase: 1. Operational efficiencies Phase: 2. Enhancing efficiency • Operational
Slide 27: Business Simplification focused in four key areas
Business Simplification focused in four key areas Simplified two segment Operating Model Leveraging technology to reduce costs Focused on: Focused on: Organising around our customers Integrated workflow capability across core Operations teams Reduced duplication, better utilisation of capacity
Slide 28: Expense discipline contributing to lower cost outcome
Expense discipline contributing to lower cost outcome As a Cost analysis percentage of (£m) revenues FY FY FY FY 2022 2021 2022 2021 FY 2022 expense progression Support staff costs 118 127 £m Operations 22 27 6 4 5 8 Technology 35 42 26 8 Property 31 31 16 Other base costs¹ 30 25 3 Sub-total base co
Slide 29: Stable operating margin and EPS progression
Stable operating margin and EPS progression Stable operating margin with positive forward trends Stable operating margin of 22%, in line with the prior year 30% Revised target of 25% in 2025, with 30% still our aspiration 25% 22% 22% 19% 2020 2021 2022 2023 2024 2025 Long term goal Adjusted dilu
Slide 30: Questions
Questions Quilter
Slide 31: Notes
Notes Quilter =
Slide 32: Notes
Notes Quilter =