Quil t er Basic B r and Guidelines Our b r and a ss ets 1 Preliminary results 2019 11 March 2020
Disclaimer This presentation should be read in conjunction with the announcement published by Quilter plc on 11 March 2020. 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’s future relationship with 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
2019 highlights: Pivotal year for Quilter Continued strategic Solid financial performance Delivering for shareholders progress Robust revenue growth & First PTP migration completed 3.5p final dividend per share disciplined cost management Invested in revenue generation – 46% pay-out ratio capability Good organic profit growth: Planned £375m capital return – Growth in RFPs; Lighthouse, adjusted PBT £182m, to shareholders, initiating a Charles Derby Group & +3% y-o-y share buyback shortly Prescient acquired – Added 12 Investment Odd-Lot Offer of up to c.£30m Managers £110.4bn AuMA, +13% y-o-y launched – Launched new solutions – Potentially reduces 50% of Strong integrated flows, £2.6bn Continued optimisation share register and c.1% of market cap Sold Quilter Life Assurance 4 Note: All figures within the presentation exclude Quilter Life Assurance (“QLA”) unless otherwise stated.
The new UK Platform is the heart of Quilter 2019 Gross Flows 2019 Gross Flows Destination Source £6.0bn £6.0bn Advised by Managed by 13% £1.5bn 20% (2018: 11%) Quilter £1.8bn Quilter Investors £1.5bn Restricted Financial (2018: 19%) Planners 2019 UK Platform Switches AuA £57.2bn Third party £4.5bn £4.2bn products/funds Independent 87% 80% £4.5bn Financial Advisers Quilter Investors Third party products/funds RFPs IFAs Two strong distribution channels Open architecture investment solution model 5
Wealth Platforms UK Platform: the heart of the growth opportunity Products: Supporting growth across the generations Products: Supporting growth across the generations Functionality: Market-leading, attractive to broader adviser base Functionality: Market-leading, attractive to broader adviser base Junior ISA New Arrange withdrawals and income online New Pension Enhanced Flexi ISA capability New ISA Enhanced Flexible income and regular withdrawal dates New General Investment Account Enhanced Flexible Direct Debit collection dates New Bond Enhanced New adviser MI and reporting suite New Investments: Opportunity to reengage with inactive firms Investments: Opportunity to reengage with inactive firms Ease of use: Single-source potential for Quilter RFPs Ease of use: Single-source potential for Quilter RFPs Option to invest in ETFs and Investment Trusts Online user experience Enhanced New Access to cash accounts Cross browser functionality Enhanced New Range of available discretionary IMs Enhanced Mobile and tablet optimised New Adviser model portfolio management Enhanced Improved view & control of investments through online Customer centre Enhanced Opportunities: 1) greater share of flow from RFPs to UK Platform; 2) broaden & deepen relationships with IFAs; 3) broaden Quilter Investors’ solution suite 6
Advice & Wealth Management Quilter Financial Planning: driving the growth opportunity Growth in Quilter RFPs 2019 proofs of delivery: 137 Acquisition of Charles Derby Group, Lighthouse plc and Prescient 41 3 1,799 57 Solid organic RFP growth, largely in 1H19; 2H19 focus on integration of acquired advisers, impacting productivity 1,621 1,561 Financial Adviser School scaled up to produce 100 Number graduates per year from 2020 of RFPs 31 Dec 2017 Organic Acquisition 31 Dec 2018 Organic Acquisition 31 Dec 2019 growth growth Opportunities: Opportunity to capture greater share of Platform value post-PTP Further organic RFP growth and conversion from IFA to restricted Quilter £1.5bn Increase productivity of RFPs UK Platform RFP gross Quilter Increase proportion of adviser-generated flows that end sales c.65% Investors up on the UK Platform c.£3.1bn Third party c. £1.6bn platforms 7
Advice & Wealth Management Quilter Financial Planning: driving the growth opportunity 2019 proofs of delivery: Acquisition of Charles Derby Group, Lighthouse plc and Prescient Solid organic RFP growth, largely in 1H19; 2H19 focus on integration of acquired advisers, impacting productivity Financial Adviser School scaled up to produce 100 graduates per year from 2020 Opportunities: Further organic RFP growth and conversion from IFA to restricted Increase productivity of RFPs Increase proportion of adviser-generated flows that end up on the UK Platform 8
Advice & Wealth Management Quilter Investors: supporting the growth opportunity Comprehensive suite of solutions meeting customer needs 2019 proofs of delivery: New products launched and product suite refreshed Cirilium Active Cirilium Passive Separation from Merian, infrastructure build-out Cirilium Blend completed ahead of schedule and on-budget Quilter Investors AuM Income £20.8bn Wealth Select Active Wealth Select Passive Other Opportunities: Cirilium & Wealth Select investment performance Performance vs respective Investment Association sector average Enabling growth with consistent performance Cumulative returns: at 31 December 2019 Comprehensive suite of active and passive solutions Relative -1.1 +2.2 +0.3 +1.9 -3.0 -0.7 -0.5 +3.6 -2.8 (pp) 50% Broadening range of solutions performance 40% 3 year 30% 20% 10% 0% vs. IA MI 0-35% vs. IA MI 20-60% vs. IA MI 40-85% vs. IA Flex Inv. vs. IA Global Cirilium Wealth Select IA benchmark 9 Note: Investment performance represents Active & Passive performance, AuM-weighted, as at 31 December 2019.
Advice & Wealth Management Quilter Cheviot: continuing the growth opportunity Continues to deliver strong gross sales despite disruption to IM team 2019 proofs of delivery: £bn 0.9 Gross sales Net flows Net flows excl. IM departures Strong investment performance over 1, 3, 5, 10 years 0.7 Year-on-year increase in gross sales: second-best year 0.5 ever 0.3 Welcomed net 12 new Investment Managers 0.1 -0.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018 2019 Opportunities: -0.3 -0.5 Capitalise on larger team and advice connection with Quilter Cheviot cumulative returns broader Quilter Financial Planning offering and Quilter International Quilter Cheviot PCI performance vs. peers, as at 31 December 2019 +2.1 +1.1 +0.7 Relative (pp) 40% Leverage added DFM functionality on new UK Platform performance 30% 3 year 20% Expanding UK footprint, co-locating in Leeds with 10% Quilter Private Client Advisers 0% Balanced Steady Growth Equity Risk QC PCI ARC PCI 10 Note: QC net flows excl. IM departures includes Institutional mandate redemption. Investment performance represents PCI performance vs peers as at 31 December 2019. +2.1 +3.7 +2.7
Wealth Platforms Quilter International: repositioning for growth Refocused international presence 2019 proofs of delivery: Robust solution for HNW customer base – 41% growth in new UK business policies 17% reduction in expense base to drive profitability Rebranded to Quilter International, strengthening brand recognition Opportunities: Lumpy NCCF underlines need for agile expense base Driving closer linkage with broader Quilter Financial £bn Planning offering and Quilter Cheviot 1.2 1 Considering selective investment to broaden 0.8 distribution capability 0.6 Further expense rationalisation 0.4 0.2 0 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 11
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