Slide 1: JTC Interim Results 2023
ACCE LE R ATI NG TOG E TH ER JTC INTERIM RESULTS 2023
Slide 2: Agenda
1 CEO HIGHLIGHTS 2 CEO HIGHLIGHTS 5 FINANCIAL REVIEW FINANCIAL REVIEW AG EN DA 16 BUSINESS REVIEW 19 SUMMARY & OUTLOOK 20 Q& A 21 APPENDICES BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES J T C I N T E R I M R E S U L T S 2 0 2 3
Slide 3: CEO Highlights
2 CEO HIGHLIGHTS FINANCIAL REVIEW “We have been delighted with the performance of the business in the first half of the year. Our organic growth has been outstanding and our M&A activity continues to add quality and depth to the JTC platform, especially BUSINESS REVIEW in the US. We will achieve our
Slide 4: Group Highlights
3 CEO HIGHLIGHTS CEO HIGHLIGHTS 35 YEARS OF GROWTH GROUP HIGHLIGHTS FINANCIAL REVIEW “Outstanding organic growth and strategically important M&A.” – Net organic revenue growth 21.0% (+11.5pp) – Group Commercial Office success – Record annualised wins of £14.6m (+15.9%) with new services and cross-se
Slide 5: CEO Financial Highlights
4 CEO FINANCIAL HIGHLIGHTS CEO HIGHLIGHTS N E T O RGA N I C UN D ER LY I N G G ROW T H UN D ER LY I N G EB IT DA MA RG I N 21.0% FINANCIAL REVIEW EB IT DA R E V EN UE £4 0. 2M 3 3 .1% +11 . 5 P P £121.5M +30.8% + 0 .1 P P 9. 5% H1 2022 +30.6% 33 . 0% H1 2022 £3 0 .7M H1 2022 £93 . 0 M H1 2022 BUSINE
Slide 6: Financial Review
SUMMARY CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW & OUTLOOK APPENDICES 5 RE VI E W FI NANCIAL 2 0 2 3 R E S U L T S I N T E R I M J T C
Slide 7: CFO Quote: Financial Review
6 CEO HIGHLIGHTS “Delivering long-term value through exceptional revenue growth.” FINANCIAL REVIEW MARTIN FOTHERINGHAM, CFO BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES J T C I N T E R I M R E S U L T S 2 0 2 3
Slide 8: Financial Highlights
7 FINANCIAL HIGHLIGHTS CEO HIGHLIGHTS F O R T H E 6 M O N T H S E N D I N G 3 0 J U N E 2 0 2 3 “Continued momentum REPORTED U N D E R LY I N G from 2022.” FINANCIAL REVIEW H1 2023 H1 2023 H1 2022 CHANGE Revenue (£m) 121.5 121.5 93.0 +30.6% EBITDA (£m) 36.5 40.2 30.7 +30.8% HIGHLIGHTS EBITDA margin
Slide 9: LTM Revenue Bridge
8 LT M R E V E N U E B R I D G E CEO HIGHLIGHTS L A S T T W E L V E M O N T H S ( “ L T M ” ) “O utstanding organic growth of 21.0%.” Lost Won £178.0m* £0.4m £1.8m £7.1m £33.5m £10.6m £14.7m £227.5m FINANCIAL REVIEW £12.4M ACQUISITION £165.6M COMMENTARY ORGANIC – Overall revenue growth of 30.6% (H1
Slide 10: LTM Net Organic Growth
9 LT M N E T O RG A N I C G ROW T H CEO HIGHLIGHTS “Record levels of organic growth across both PLC ORGANIC GROWTH THREE YEAR AVERAGE 8% – 10% GUIDANCE RANGE DRIVEN BY FINANCIAL REVIEW H1 2020 2020 H1 2021 2021 H1 2022 2022 H1 2023 21.0% 25% 20% 21.0% Pricing 5.5% Divisions.” 15% 12.0% 10.1% 9.5% 9.
Slide 11: Revenue by Geography
10 REVENUE BY GEOGRAPHY CEO HIGHLIGHTS “US continues to be highest REVENUE GROWTH (£M) REPORTED A S PER FINANCIAL STATEMENTS H1 2023 LTM NET ORGANIC GROWTH growth region.” FINANCIAL REVIEW H1 2023 H1 2022 +/- % PLC UK & Channel Islands 64.7 51.6 +13.1 +25.3% 21.8% COMMENTARY US 25.3 16.2 +9.0 +55.6%
Slide 12: Underlying EBITDA Margin
11 U N D E R LY I N G E B I T DA M A R G I N CEO HIGHLIGHTS “I mprovement of margin during PLC UNDERLYING GUIDANCE RANGE period of growth FINANCIAL REVIEW H1 2020 2020 H1 2021 2021 H1 2022 2022 H1 2023 45% and inflationary 40% 35% 33.3% 33.6% 32.7% 32.8% 33.0% 33.0% 33.1% pressures.” 30% BUSINESS RE
Slide 13: Underlying Cash Conversion
12 U N D E R LY I N G C A S H C O N V E R S I O N CEO HIGHLIGHTS “C ash conversion 85–90% GUIDANCE RANGE CASH CONVERSION ACQUISITION IMPACT ahead of H1 108% 108% 113% expectations.” FINANCIAL REVIEW 6% 101% 102% 91% 91% 87% 8% COMMENTARY 79% – Underlying cash conversion 113% (H1 2022: 101%) above ex
Slide 14: Net Debt
13 NET DEBT CEO HIGHLIGHTS F O R T H E P E R I O D E N D E D 3 0 J U N E 2 0 2 3 “Reduced due to strong cash (£104.8m) £45.2m (£1.6m) (£3.7m) (£6.5m) (£3.1m) (£10.1m) (£2.3m) (£86.9m) £58.9m (£28.0m) collection and FINANCIAL REVIEW proceeds from equity fundraise.” BUSINESS REVIEW COMMENTARY – Underl
Slide 15: Leverage
14 LEVERAGE CEO HIGHLIGHTS F O R T H E P E R I O D E N D E D 3 0 J U N E 2 0 2 3 “Temporary Bank leverage Reported leverage deleveraging in 2.38 advance of SDTC FINANCIAL REVIEW 2.25 acquisition.” 2.11 2.34 1.92 1.94 1.96 1.82 1.61 1.59 COMMENTARY – Leverage at period end at 0.37x underlying reporte
Slide 16: Return on Invested Capital
15 R E T U R N O N I N V E S T E D C A P I TA L CEO HIGHLIGHTS F O R T H E P E R I O D E N D E D 3 0 J U N E 2 0 2 3 “Consistently delivering returns above ROIC excl. SALI & SDTC 2021A 2022A 2023PF FINANCIAL REVIEW 20% 18% 16.2% 17.7% cost of capital.” 16% 14.1% 14% 11.5% 11.7% COMMENTARY 12% 10.6%
Slide 17: Business Review
SUMMARY 16 CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW & OUTLOOK APPENDICES RE VI E W BUS I N ESS 2 0 2 3 R E S U L T S I N T E R I M J T C
Slide 18: Business Review
17 BUSINESS REVIEW CEO HIGHLIGHTS GROUP FINANCIAL REVIEW ONGOING MACRO ICS DIVISION PCS DIVISION U N C E R TA I N T Y • Recognised top-tier market participant • Stand out market leader in the • Improved talent, operational capability COMMERCIAL global trust company industry and range of services OFF
Slide 19: Cosmos Flight Plan
18 COSMOS FLIGHT PLAN COSMOS CEO HIGHLIGHTS $12BN+ 2024 – M A R K E T S IZE GALAXY 2020 – 2023 E* FINANCIAL REVIEW K E Y M A R K E T D R IV ER S ODYSSEY 2018 – 2020 R EG U L AT I O N & O U T S O U RC I N G DOUBLE AGAIN • £0.5BN+ REVENUE W E A LT H & G LO B A L I S AT I O N REVENUE EBITDA • DOUBLE EB
Slide 20: Summary & Outlook
19 SUMMARY & OUTLOOK CEO HIGHLIGHTS K E Y T A K E A W A Y S FINANCIAL REVIEW Organic growth and momentum from – Excellent trading period in both Divisions H2 2023+ record new business wins carried into H2 – Outstanding organic growth at 21.0% Integration of SDTC underway – Key transformational acqui
Slide 21: Q&A Thank You
SUMMARY 20 CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW & OUTLOOK APPENDICES Q& A YOU 2 0 2 3 R E S U L T S THAN K I N T E R I M J T C
Slide 22: Appendices
SUMMARY 21 CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW & OUTLOOK APPENDICES APPEN D ICES 2 0 2 3 R E S U L T S I N T E R I M J T C
Slide 23: Nigel Le Quesne, Chief Executive Officer
22 CEO HIGHLIGHTS Nigel Le Quesne has been the key figure in the development of the JTC Group over the last 35 years. N I G EL L E Q UES N E As Chief Executive Officer, Nigel provides strategic leadership and management for all areas of JTC’s operations, as well as developing CH I EF E X ECUT IV E O
Slide 24: About Us
23 ABOUT US CEO HIGHLIGHTS FINANCIAL REVIEW GLOBAL C.335 35 YEARS FTSE BILLION BUSINESS REVIEW REVENUE USD PROFIT GROWTH 2 5 0 P L AT F O R M SUMMARY & OUTLOOK CLIENT 10,000+ CLIENTS SERVICE AWARD WINNING EXCELLENCE C . 1,700 PEOPLE EVERY APPENDICES EMPLOYEE AN OWNER 100+ COUNTRIES J T C I N T E R I
Slide 25: Leading Together: Senior Management Team
24 LEADING TOGETHER CEO HIGHLIGHTS S E N I O R M A N A G E M E N T T E A M FINANCIAL REVIEW BUSINESS REVIEW M A RT I N FOT H ER I N G HA M W EN DY H O L L E Y GROUP CHIEF CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER (PLC) SUSTAINABILITY OFFICER (PLC) SUMMARY & OUTLOOK R I CHA R D I N G L E CHIE
Slide 26: JTC Overview
25 JTC OVERVIEW CEO HIGHLIGHTS FINANCIAL REVIEW INSTITUTIONAL CLIENT SERVICES (ICS) DIVISION PRIVATE CLIENT SERVICES (PCS) DIVISION Provides fund, corporate and banking services Provides trust, corporate and banking services BUSINESS REVIEW to institutional clients, primarily fund managers, for glob
Slide 27: The JTC Investment Case
26 THE JTC INVESTMENT CASE CEO HIGHLIGHTS 125+ YEARS FINANCIAL REVIEW Experience of senior team 12.7% Net organic growth* 25.2% EXPERIENCED Revenue AND CAGR last ENTREPRENEURIAL 19.2% 10 yrs MANAGEMENT Inorganic DEMAND TEAM DESIGNED growth* CREATED FOR GROWTH, BUSINESS REVIEW BY LONG-TERM ORGANIC AN
Slide 28: Global Reach
27 GLOBAL REACH CEO HIGHLIGHTS PCS ONLY ICS ONLY CROSS DIVISIONAL JTC KENSINGTON Fareham London (2x) Edinburgh St. Louis Netherlands FINANCIAL REVIEW IoM C. 1,700 Ireland (2x) PEOPLE Guernsey BUSINESS REVIEW Boston Jersey South Dakota (2x) New York San Jose Delaware Switzerland 33 OFFICES SUMMARY Au
Slide 29: Blue-Chip Global Client Base
28 BLUE-CHIP GLOBAL CLIENT BASE CEO HIGHLIGHTS FINANCIAL REVIEW 8 OF THE 10 BUSINESS REVIEW L A RG E S T G LO BA L I N V E S T M ENT BA N K S 20% SUMMARY & OUTLOOK O F F TS E 10 0 CO M PA N I E S C. 20 CLIENTS APPENDICES W H O FE AT UR E W IT H I N T H E FO RT UN E 5 0 0 J T C I N T E R I M R E S U
Slide 30: Competitor Landscape
29 COMPETITOR LANDSCAPE CEO HIGHLIGHTS T H E M A R K E T C A N B E S E G M E N T E D T H R O U G H E N D - M A R K E T S E R V I C E S , G E O G R A P H I C A L C O V E R A G E A N D S I Z E KEY PUBLIC PE-OWNED PRIVATELY OWNED BUBBLE SIZE REPRESENTS ESTIMATED EBITDA IN MILLIONS $1 CITCO TMF FINANCIA
Slide 31: Macro Market Trends: Institutional Client Services
30 MACRO MARKET TRENDS CEO HIGHLIGHTS I N S T I T U T I O N A L C L I E N T S E R V I C E S 2 0 2 0 – 2 0 2 5 F E S T . C A G R S FINANCIAL REVIEW Global Fund Administration Market Size +11% +7% +8% +10% For Closed Ended Funds, $bn (2013-2025f) US EU RoW Overall OUTSOURCING REGUL ATORY COMPLEXITY Gr
Slide 32: Macro Market Trends: Private Client Services
31 MACRO MARKET TRENDS CEO HIGHLIGHTS P R I V A T E C L I E N T S E R V I C E S I N C R E A S I N G N U M B E R O F G L O B A L U H N W I , 2 0 2 0 T O 2 0 2 1 ( ‘ 0 0 0 ) STRUCTURAL GROWTH DRIVERS – Wealth creation: The ultra-wealthy are FINANCIAL REVIEW The ongoing growth in global wealth continue
Slide 33: Our Sustainability Journey
32 O U R S US TA I N A B I L I T Y J O U R N E Y CEO HIGHLIGHTS PRESENT NEXT 12-18 MONTHS BEYOND Climate & Transition Risk Established energy Net Zero by 2030 planning Annual reduction of carbon FINANCIAL REVIEW Carbon Emissions efficiency, waste and footprint leading to Net NZFSPA Energy Efficiency
Slide 34: Technology Enabled
33 TECHNOLOGY ENABLED CEO HIGHLIGHTS We are a people business CREATE NEW AND ENHANCED IMPROVE SPEED, ACCURACY MITIGATE RISK that is increasingly SERVICE OFFERINGS FOR CLIENTS AND QUALITY OF PROCESSES FINANCIAL REVIEW enhanced and enabled by technology. We apply technological capabilities across the
Slide 35: CFO Appendix
34 CEO HIGHLIGHTS FINANCIAL REVIEW CFO APPEN D IX BUSINESS REVIEW CF O A P P E N D I X SUMMARY & OUTLOOK APPENDICES J T C I N T E R I M R E S U L T S 2 0 2 3
Slide 36: Group Balance Sheet
35 GROUP BALANCE SHEET CEO HIGHLIGHTS F O R T H E P E R I O D E N D E D 3 0 J U N E 2 0 2 3 “Ready to capitalise on Non-current assets 30.06.2023 £M 31.12 . 2 0 2 2 £M +/(-) £M inorganic growth FINANCIAL REVIEW Property, plant and equipment Goodwill 46.0 352.4 49.6 363.7 (3.6) (11.3) opportunities.”
Slide 37: Group Cash Flow
36 GROUP CASH FLOW CEO HIGHLIGHTS F O R T H E P E R I O D E N D E D 3 0 J U N E 2 0 2 3 “A s expected, first half of the H1 2023 £M H1 2022 £M year continues FINANCIAL REVIEW Cash generated from operations Income taxes paid 43.6 (2.1) 29.4 (0.7) to be highly Net cash from operating activities 41.5 2
Slide 38: PCS Division
37 PCS DIVISION CEO HIGHLIGHTS “Record growth and performing well.” REVENUE AND UNDERLYING EBITDA UNDERLYING EBITDA MARGIN (%) REVENUE EBITDA UNDERLYING EBITDA MARGIN % FINANCIAL REVIEW -0.3pp £40.8M +38.3% 36.3% 36.0% £29.5M COMMENTARY – Net revenue growth 38.3% BUSINESS REVIEW £14.7M – Net organic
Slide 39: ICS Division
38 ICS DIVISION CEO HIGHLIGHTS “Continued momentum and delivery REVENUE AND UNDERLYING EBITDA UNDERLYING EBITDA MARGIN (%) REVENUE EBITDA UNDERLYING EBITDA MARGIN % FINANCIAL REVIEW £80.7M 31.5% 31.6% of record 22.4% £63.5M +27.0% +0.1pp organic growth.” BUSINESS REVIEW COMMENTARY £25.5M +27.4% £20.
Slide 40: Client Attrition and Retention
39 C L I E NT AT T R IT I O N A N D R E T E NT I O N CEO HIGHLIGHTS “L ower attrition reflects the increased length CLI ENT AT TRITION RETENTION OF NON END OF LIFE REVENUE FINANCIAL REVIEW PLC END OF LIFE NON END OF LIFE RETENTION OF NON END OF LIFE REVENUE H1 2020 2020 H1 2021 THREE YEAR AVERAGE 20
Slide 41: Important Notice
40 I M P O RTA N T N OT I C E CEO HIGHLIGHTS This presentation should be read in conjunction with the RNS The release, publication or distribution of this presentation in jurisdictions announcement published by JTC PLC (“JTC” or “The Company”) other than the United Kingdom may be restricted by law a
Slide 42: JTC Interim Results 2023
JTC INTERIM RESULTS 2023 J TC G R O U P. C O M