Quilter (QLT) Investor Presentation summary

Strategic transformation and business model

• Divested non-core businesses since 2018, returning approximately £1.3bn to shareholders and focusing on core segments with a current market cap of £2.0bn as of August 2024.

• Operates two main segments: Affluent and High Net Worth, each with distinct competitors and service offerings in advice, platform administration, and investment management.

• Business model is channel-agnostic, leveraging both Independent Financial Advisers (IFAs) and in-house Restricted Financial Planners (RFPs) for distribution.

• Open, unbundled pricing structure with no client or adviser lock-ins, ensuring transparency and competitiveness.

• Strategic focus on building distribution, enhancing propositions, and driving operational efficiency.

Financial performance and growth

• H1 2024 revenues grew year-on-year: £112m (+4%) for High Net Worth and £206m (+6%) for Affluent, with group adjusted profit before tax up 33% to £97m.

• Operating margin improved to 29% (+5ppts YoY), with ongoing cost-saving initiatives targeting a 30% margin medium-term.

• Gross flows in H1 2024 increased 34% YoY to £3.8bn, with net flows up 669%, reflecting strong momentum in both High Net Worth and Affluent segments.

• High Net Worth gross flows rose 33% YoY, while Affluent gross flows increased 41% YoY, with notable improvements in IFA channel net platform flows.

• Investment income rose to £37m in H1 2024, with sensitivity to interest rates offset by AuMA growth.

Operational efficiency and capital management

• Achieved significant cost savings through transformation programs, with further £50m targeted on the 2022 cost base.

• Operating expenses reduced by 6% since H1 2022, while adjusted profit before tax increased 73% from H1 2021 to H1 2024.

• Solvency II ratio stands at 268% and cash at head office is £380m, supporting ongoing dividends, growth investments, and potential acquisitions.

• Capital allocation prioritizes organic growth, efficiency programs, bolt-on acquisitions, and regular/special returns to shareholders.