Quil t er Basic B r and Guidelines Our b r and a ss ets 1 Interim results 2019 5 August 2019
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 financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Quilter plc’s control including amongst other things, international and global economic and business conditions, the implications and economic impact of several scenarios of the UK leaving the EU in relation to financial services, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Quilter plc and its affiliates operate. As a result, Quilter plc’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Quilter plc’s forward looking statements. Quilter plc undertakes no obligation to update the forward-looking statements contained in this presentation or any other forward- looking statements it may make. Nothing in this presentation should be construed as a profit forecast. Nothing in this presentation shall constitute an offer to sell or the solicitation of an offer to buy any securities. 2
Presentation agenda Business review Paul Feeney Financial review Mark Satchel Concluding remarks Paul Feeney Q&A 3
Our journey to deliver a focussed UK wealth management business Listed as Quilter plc Acquisition of Announce sale of on LSE and JSE Lighthouse plc Quilter Life Old Mutual Wealth Assurance Capital Markets Special Dividend: Showcase I Return of proceeds Optimisation phase 1 execution Sale of European life from sale of Old Mutual Sale of Old Mutual Targeting 4pp improvement in operating books Announce Global Investors to Global Investors margin by 2021 Optimisation phase 1 Acquisition of Intrinsic TA Associates and Quilter Cheviot 2017 2018 2019 2020 Managed separation Acquisition of UK Platform Transformation completed Charles Derby Group Programme: Old Mutual plc Closure of FCA Migration testing and delivery managed separation investigation into phase announced Life Assurance book Quilter Investors New UK Platform buildout and product Transformation refresh Programme initiated 4
H1 2019 highlights: financial, strategic and operational progress Operational Financial Strategic Solid financial Investing in advice PTP progressing well performance Charles Derby Group & Adjusted profit up 5% to £115m Lighthouse plc acquisitions UK Platform upgrade well in a challenging flow consolidate our position as the advanced – confident in delivery environment second largest advisory business in the UK Focussing business Strong capital Good optimisation progress perimeter Solvency II ratio 181% Agreed sale of Programme delivery driving Recommended interim dividend Quilter Life Assurance to operating margin improvement of 1.7 pence per share 1 ReAssure for £425m 5 1. Including 0.43 pence per share in respect of QLA’s first half profit contribution.
Lower net flows in 2019 partly attributable to expected outflows Integrated flows £1.3bn 1 Integrated flows £5.2bn 1 Integrated flows £4.7bn 1 Integrated flows £2.2bn 1 Asset retention 90% 1 Asset retention 91% 1 Asset retention 89% 1 Asset retention 90% 1 After expected outflows of: 2.3 0.6 IM departures 2.0 Quasi- institutional 0.2 1.9 1.9 account 1.5 1.3 1.2 1.1 1.0 1.0 0.7 0.6 0.5 (0.2) Q4 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q1 £m Q2 2019 2016 2017 2018 FTSE-100 2 FTSE All-Share 2 NCCF excl. Quilter Life Assurance 6 1. Excludes Quilter Life Assurance. 2. Source: Factset.
NCCF and AuMA growth AuMA evolution from continuing operations £bn Of which £0.4bn Of which £0.5bn Of which £1.1bn is DB to DC is DB to DC is DB to DC 56 57 1.7 56 9.1 3.0 0.0 (7.1) 0.3 2% 6% 0% 1 (7%) 1 9% 1 1% XX 108.7 104.7 101.7 99.3 Market Market Opening Market 31 Dec 2018 30 June 2019 NCCF NCCF 30 Jun 2018 NCCF performance performance 2018 performance % % NCCF as % of opening AuMA excl. Quilter Life Assurance bps Market growth Revenue margin 7 1. Market performance defined as market investment movement / opening AuMA.
NCCF and AuMA growth AuMA evolution from continuing operations £bn 56 (4.9) 6.0 56 9.1 0.3 9% 1 108.7 1% 99.3 108.7 101.7 1.1 (0.6) 108.7 99.3 (0.2) 0.3 Gross flows "Normal" Quilter Cheviot IM Quasi-institutional NCCF redemptions departures account H1 2019 NCCF excluding expected outflows 31 Dec 2018 Market 30 June 2019 NCCF performance % % bps Revenue margin NCCF as % of opening AuMA excl. Quilter Life Assurance Market growth 8 1. Market performance defined as market investment movement / opening AuMA.
UK Platform Transformation Programme: gearing up for migration Feb Mar – Dec Jul – Nov 2017 Summer 2019 Rest of 2019/20 2019 2018 Functional testing & Phased Soft launch migration planning migration Build Design Testing Final system Migration code delivery rehearsals Final mile of the journey… Migration data validation nearly complete Rigorous functional testing to ensure the system meets our demanding quality standards is progressing well c.£25 million additional costs for programme completion in 2020 reflecting additional migration resourcing and longer dual running Scheduling full dress rehearsals ahead of first migration phase planned by early 2020 9 Complete In progress Not started
Optimisation: good progress made What we have done What we have left to do Initial simplification and unification of the Transform our support functions into shared services support functions Implement group wide cost categories Quick win tactical efficiencies delivered General ledger build Staff restructuring Standardise processes and automate as appropriate Third party contract renegotiation Property and facilities savings Commenced system changes to support further rationalisation 2021 2019 2020 Operating +2pp +2pp margin Programme initiated impact 10
Investment performance: Quilter Cheviot & Quilter Investors Quilter Cheviot Cumulative returns Cirilium & Wealth Select Performance vs respective Investment Association sector average Quilter Cheviot PCI performance vs. peers, as at 31 March 2019 Cumulative returns: at 28 June 2019 -5.4 Relative (pp) +2.3 +1.5 +1.3 Relative (pp) +2.8 +1.8 +6.1 +1.6 +3.0 -1.7 +5.2 +4.1 40% 50% 40% 30% 3 year 3 year 30% 20% 20% 10% 10% 0% 0% Balanced Steady Growth Equity Risk vs. IA MI 0-35% vs. IA MI 20-60% vs. IA MI 40-85% vs. IA Flex Inv. vs. IA Global Relative (pp) +2.9 +1.9 -1.8 Relative (pp) +6.8 +2.4 +8.9 +5.8 +6.7 +11.3 +2.7 +1.8 +2.1 40% 60% 30% 5 year 5 year 40% 20% 20% 10% 0% 0% Balanced Steady Growth Equity Risk vs. IA MI 0-35% vs. IA MI 20-60% vs. IA MI 40-85% vs. IA Flex Inv. vs. IA Global +34.4 Relative (pp) +24.7 +25.7 Relative (pp) +26.5 +20.8 +49.3 200% 200% 150% 150% 10 year 10 year 100% 100% 50% 50% 0% 0% Balanced Steady Growth Equity Risk vs. IA MI 20-60% vs. IA MI 40-85% vs. IA Flex Inv. 11 Cirilium Wealth Select IA benchmark QC PCI ARC PCI
Financial review Mark Satchel 5 August 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 AuMA 2 % 1 6 (5pp) Integrated flows 2 £bn 1.3 2.8 (54%) Adjusted diluted earnings per share of 5.5p in line with prior year AuMA £bn 118.4 116.5 +2% - Of which QLA £bn 12.1 14.5 (17%) Interim dividend of Adjusted profit before tax £m 115 110 +5% 1.7 pence per share 1 - Of which QLA £m 26 27 (4%) NCCF of £0.3bn 2 IFRS (loss)/profit after tax 3 £m (17) 342 Operating margin % 29 29 - Integrated flows of £1.3bn 2 - Excl. QLA % 26 25 +1pp Good growth in RFPs Non-financial: Restricted Financial Planners (‘RFPs’) # 1,803 1,590 +13% Investment Managers (‘IMs’) # 163 168 (3%) 1. Inclusive of 0.43 pence per share in respect of QLA’s first half profit contribution. 13 2. Excluding Quilter Life Assurance (QLA). 3. Represents total IFRS (loss)/profit including discontinued operations.
Resilient performance Revenue 2 Average AuMA 2 NCCF 1 £bn £m £bn Integrated Revenue 2.8 1.3 57 57 - flows (£bn) margin (bps) 9.1 114.5 114.4 -90% 3% 3.0 395 385 0.3 H1 2018 H1 2018 H1 2019 H1 2019 H1 2019 H1 2018 Market movement contribution Expenses 2 Adjusted profit before tax 2 Adjusted diluted EPS 2 £m £m Pence Operating 29% 29% margin 2% 5% - 275 280 115 110 5.5 5.5 H1 2018 H1 2019 H1 2018 H1 2019 H1 2019 H1 2018 14 1. Excluding Quilter Life Assurance (QLA). 2. Including Quilter Life Assurance (QLA).
Recommend
More recommend
