Kingswood : Investor and Analyst Presentation - September 2021

POSITIONED FOR GROWTH

I N V E S T O R & A N A L Y S T P R E S E N T A T I O N	S E P T E M B E R 2 0 2 1

A Period of Consolidation and Growth for the Business

GARY WILDER

Group CEO

Key Headlines

• Combined UK and US Divisional Operating Profits of £5.3m
• Group Revenue of £61.5m and £3.1m Operating Profit, with £6.2bn Group assets under advice/management
• Continue to build a leading wealth management business in the UK
• Acquisition of Admiral Wealth Management in August 2021
• In exclusive discussions with a further 7 UK and 2 International businesses
• Kingswood US delivers exceptional revenue growth

2

Strong Growth in the UK and US combined delivered Operating Profit of £5.3m

Financial

Headlines

£'000 (unless otherwise stated)	H1 2021	H1 2020	Change
Wealth Management	8,307	4,678	78%
Investment Management	2,312	2,135	8%
Kingswood US	50,922*	1,438	3441%
Total Revenue	61,541	8,251	646%
Kingswood UK (WM + IM)	2,830	1,035	173%
Kingswood US	2,519	(28)	n/a
Division Operating Profit	5,349	1,007	431%
Central Costs	(2,294)	(2,274)	1%
Group Operating Profit	3,055	(1,267)	n/a
Total Equity	43,315	32,886	10,429
AUA/AUM (£ millions)	6,172	4,718	1,455
# of UK Advisers	64	30	34
* £41.8m Investment Banking Fees and £9.1m Wealth Management Revenues	3

KINGSWOOD GROUP TODAY

UK

Wealth

		Institutional
	Investment	treasury and
Wealth Planning	liquidity
Management	management
advice, pensions, estate	discretionary service, managed	services to
planning, mortgages,	institutional
portfolio service,
	clients
protection, tax & accounting	personal/bespoke portfolios,
	alternatives

US

Independent Broker	Registered	Investment Banking
Dealers	Investment
Self employed model,	Advisers	self employed model, fee &
	commission driven,
commission driven,	employed model, recurring
centralised distribution
centralised compliance	advisory fees, AUM driven

CURRENT AUM/A

£1.7bn	UK Wealth Planning
£6.2bn	Investment Management
£2.8bn
Institutional
	Kingswood US
£1.2bn
£0.5bn

4

UK GROWTH MODEL

DAVID LAWRENCE

UK CEO

Grow Acquire

Integrate

Key Headlines

1. 16 UK regional network offices across the country with 64 client facing advisory colleagues and assets under advice/management of £4.5bn from c.8,000 active clients

1. Consolidating progress built in 2020 whilst charting a course in 2021 and beyond to become a leading UK wealth management business

1. Key investments in our colleague proposition

1. Single-mindedclient focus across our core propositions and to improve the overall customer experience

1. Strong pipeline of UK acquisitions to complete in 2021 and 2022

Growth Enablers

1. Creating adviser capacity for organic growth through more efficient processes

1. Increasing adviser productivity, re balancing a focus on retention with that on New business o Re imagining client journeys driving efficiency in support ratios

1. Creating complementary Mass Affluent and HNW client propositions that are clear and are value for money

1. Maintaining a strong investment performance vs ARC and risk benchmarks

1. Delivering optimal flows from wealth planning activity into our investment proposition, derived from new client activity and existing client migration

1. Creating a home-grown pipeline of future advisors through Kingswood Academy

5

PERSONAL AND LOCAL

INTEGRATED EXPERTISE

DEPTH

GROWTH

IMPACT