Quilter Plc · LSE:QLT
Quilter — Merger or Acquisition (April 2019)
19 slides from Quilter's merger presentation, Apr 3, 2019
Slide 1: Acquisition of Lighthouse Group plc
Acquisition of Lighthouse Group plc 3 April 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Quilter plc (the “Company”) in connection with the recommended cash offer by Intrinsic Financial Services Limited (“Intrinsic”) for the issued and to be issued ordinary share capital in Lighthouse plc (the “Target”) pursuant to Rule 2.7 of the UK Cit
Slide 3: Disclaimer continued
Disclaimer continued This presentation may contain certain forward-looking statements with respect to, including but not limited to, the Offer, the Company's and Intrinsic's plans and their current goals and expectations relating to their future financial condition, performance and results. These fo
Slide 4: Presentation agenda
Presentation agenda Introduction and advice strategy Paul Feeney – CEO, Quilter plc Advice market and the opportunity Andy Thompson – CEO, Quilter Financial Planning Financials and timetable Mark Satchel – CFO, Quilter plc Q&A 4
Slide 5: Advice is at the heart of what we do
Advice is at the heart of what we do High Net Worth Affluent Mass Affluent 1 3rd party FAs Open market, financial advisers 2 Advice: Network Quilter Financial Planning 3 Advice: National Quilter Private Client Advisers Quilter Financial Advisers Investment Platform wrapper Investment Discretionary F
Slide 6: Advice market and the opportunity
Advice market and the opportunity Andy Thompson
Slide 7: Evolution of the advice model
Evolution of the advice model Quilter RFPs Quilter Investors’ AuM FCA focus on value for money Lighthouse +20% +81% Advice automation and technology £17.8bn 1,621 Pensions freedom 1,350 £9.8bn Constrained supply of advisers 2015 2018 2015 2018 PROFESSIONALISATION CHANGE IN RELATIONSHIP DISRUPTION OF
Slide 8: Race for distribution
Race for distribution Diminished number of advisers Increased demand for advice Winners: New entrants: Losers: Scale players Re-emergence of banks Sole traders Successful consolidators Potential scale acquirer? Unsuccessful consolidators Regional boutique players Guided / Robo-advice
Slide 9: About Lighthouse
About Lighthouse AIM listed advice business delivering advice profits and strong business development Profitable, AIM-quoted, directly-authorised advice business Approximately 400 financial advisers 3 core advice channels: Lighthouse Financial Advice, a national business and a market leader
Slide 10: The Lighthouse opportunity
The Lighthouse opportunity High Net Worth Affluent Mass Affluent Advice: Network Quilter Financial Planning Lighthouse Communities Advice: National Quilter Private Client Advisers Quilter Financial Advisers LighthouseCarrwood Lighthouse Financial Advice Shared focus on delivering good customer out
Slide 11: Financials and timeline
Financials and timeline Mark Satchel
Slide 12: Transaction structure
Transaction structure A quality, scale business with considerable growth opportunities Quilter to acquire 100% of the issued share capital of Lighthouse at closing Recommended all-cash offer of 33 pence per share – equivalent to £46.2m¹ Represents approx. 26% premium to the volume-weighted ave
Slide 13: Financial impact
Financial impact Revenue enhancing acquisition achieving benefits through Quilter’s vertically integrated model £5-8m¹ one-off transaction and integration costs, including IT investment Expect to achieve £2m annualised cost savings from the acquisition, which will be fully realised by March 2021
Slide 14: Transaction timeline
Transaction timeline Event Timeline Regulatory approvals Engagement with the FCA and CMA to commence Posting of Scheme documentation No later than 28 days post Announcement Lighthouse shareholder meeting At least 21 days after posting of the Scheme documentation Expected completion During the second
Slide 15: Q&A
Q&A Quilter
Slide 16: Appendix
Appendix Quilter
Slide 17: Summary of Lighthouse financials
Summary of Lighthouse financials Balance sheet¹ (£m) 2018 Pro forma key financials¹,³ (£m) 2018 2017 Intangible assets 5.3 Net revenue 14.6 14.7 Property, plant and equipment 1.3 Total administrative expenses (11.8) (12.0) Investment held as fixed asset 1.0 Adjusted profit before tax 2.8 2.7 Deferre
Slide 18: Quilter
Quilter
Slide 19: Contacts
Contacts Investor enquiries John-Paul Crutchley UK +44 207 002 7016 [email protected] Keilah Codd UK +44 207 002 7054 [email protected] Media enquiries Jane Goodland UK +44 77 9001 2066 [email protected] Tim Skelton-Smith UK +44 78 2414 5076 [email protected]