Quilter (QLT) Investor presentation summary

Market opportunity and industry dynamics

• UK wealth AuA forecast to rise from c.£1.8tn in 2021 to c.£2.2-2.5tn by FY2024e; flows consolidating onto platforms and retail-advised wealth identified as growth drivers.

• In 2019, 700k+ people turned 65 and 925k+ turned 50 in England and Wales; fewer than 50% of people aged 45-54 felt they understood pensions well enough to make retirement-saving decisions.

• Pension reform, savings-allowance changes and regulatory complexity were cited as drivers of advice demand; rising compliance and PII costs challenge smaller advice firms.

Business model and strategic priorities

• Three-year post-listing transformation completed, establishing a simpler, UK-focused wealth model; current priorities include flow and revenue growth, operating-margin improvement, digitalisation and ESG integration.

• Reporting reorganised around Affluent (£50k-£500k investible assets) and High Net Worth (from £250k), aligning advice, platform and investment capabilities to client needs.

• Integrated model originated £99bn of assets, administered £75bn and managed £50bn; the platform administered £66bn at 30 June 2022.

• Growth plans include adviser recruitment, back-book migration to the new platform, deeper IFA relationships and greater use of investment solutions.

H1 2022 performance

• Platform net flows were £1.6bn and High Net Worth net flows £0.5bn; total persistency improved to 92% from 91% in H1 2021.

• Adjusted profit before tax rose 9% to £61m; operating margin increased to 20% from 18%, while expenses declined 2% to £242m.

• Revenue was £303m versus £304m in H1 2021; average AuMA increased 4% to £105.3bn.

• Simplification delivered £13m of annualised run-rate savings to date, following c.£65m of completed optimisation savings; a further £45m of simplification savings is targeted.