Quilter (QLT) Investor presentation summary

Market opportunity and industry change

• UK wealth AuA rose from c.£0.9tn in 2015 to c.£1.8tn in 2021; forecast at c.£2.2-2.5tn for FY24e.

• Retirement advice demand supported by 700k+ people turning 65 and 925k+ turning 50 in England and Wales in 2019.

• Adviser charges revenue reached £5.6bn in 2020; ongoing fees rose to 71% of the total, while PII premiums increased 17% to £119.1m.

• Pension reform, tax and allowance uncertainty, and regulatory changes increase the need for advice and compliance costs.

Integrated model and segment priorities

• Integrated advice, platform and investment capabilities support Affluent and High Net Worth clients through owned and IFA distribution channels.

• At 31 March 2022, total assets were £107bn: £98bn under administration and £45bn under management.

• Affluent strategy targets adviser growth, greater platform flows, back-book migration and increased use of investment solutions; medium-term adviser growth target is mid-single digit.

• High Net Worth priorities include growing client-facing advisers, integrating financial planning with investment management, and broadening and deepening IFA relationships.

• New Platform supported c.75,000 advice-channel customers and c.375,000 IFA-channel customers, with £71bn in administered assets at 31 March 2022.

Performance and financial targets

• FY21 net inflows were £4.0bn, up 167%; average AuMA was £105.3bn, up 17%, and revenue was £618m, up 10%.

• FY21 adjusted profit before tax rose 28% to £138m; operating margin increased to 22% from 19%, and adjusted diluted EPS rose 42% to 7.4p.

• FY21 revenue increased 10% while expenses rose 5%; operating margin reached 22%, up 3ppts YoY.

• FY25 ambitions include mid-teens EPS growth, more than doubling adjusted profit from FY20 continuing-business £108m, 6%+ annual net flows and 30%+ operating margin.

• Group operating-margin targets are at least 25% in 2023 and 30%+ in 2025.