Equita Group Spa · MIL:EQUI
Equita Group Spa — STAR Conference 2024
32 slides from Equita Group Spa's conference presentation, Mar 19, 2024
Slide 1: Investor Presentation FY'23 Results
Investor Presentation FY’23 Results March 19th, 2024 – STAR Conference 1
Slide 2: Agenda
Agenda 1. EQUITA at a Glance 2. Financial Highlights (FY’23) 3. Results since IPO 4. What’s Next and Closing Remarks 5. Appendix
Slide 3: EQUITA at a Glance
EQUITA at a Glance EZ EQUITA
Slide 4: Who We Are: The Leading Independent Italian Investment Bank
Who We Are: The Leading Independent Italian Investment Bank One of the most respected go-to partner in Italy for investors, institutions, corporates and entrepreneurs, listed on the Italian Stock Exchange and managed by a partnership of committed professionals EQUITA in a Nutshell Shareholders and S
Slide 5: Our Story: Half-a-Century of Independent Thinking
Our Story: Half-a-Century of Independent Thinking EQUITA was founded in 1973 as one of the first independent Italian merchant banks. Euromobiliare SIM is The private equity J.C. Flowers & Co., in Management team (already owning a 49.5% Euromobiliare lists on the incorporated (Italian partnership wit
Slide 6: Our Unique Business Model and What We Bring to the Table
Our Unique Business Model and What We Bring to the Table EQUITA acts as broker, financial advisor and alternative asset management platform. We offer financial advisory in strategic corporate finance transactions, capital raising solutions, access to global financial markets, execution of trading id
Slide 7: Financial Highlights (FY'23 Results)
Financial Highlights (FY’23 Results)
Slide 8: Very Resilient Performance in FY'23 and Significant Growth in 4Q'23
Very Resilient Performance in FY’23 and Significant Growth in 4Q’23 Key Financial Highlights €87.5m €16.9m FY (+2% YoY) (+5% YoY) €0.35 26% 5.0x 195 (in line with (29% in 2022) (5.0x in 2022) (+4% YoY) Net Revenues Adj. Net Profits (1) 2022 DPS) Return on Dividend Tangible Equity IFR # of €28.1m (+2
Slide 9: Tough Year for Equities and M&A in Italy
Tough Year for Equities (Brokerage, Capital Markets) and M&A in Italy Market figures ▪ Euronext Milan +28% YoY Third Parties Brokered Volumes (1) in 4Q’23 ▪ Euronext Growth Milan +13% YoY ▪ Bonds +45% YoY Equity – Euronext Milan Equity – Euronext Growth Milan (EGM) Fixed Income (MOT) Var FY’22-FY’23
Slide 10: Better Performance compared to Peers, Implied Increase in Market Share
Better Performance compared to Peers, Implied Increase in Market Share Comparison between Selected International Investment Banks and Advisory Firms vs EQUITA FY’23 vs FY’22 (1 Jan – 31 Dec) % Var Net Revenues % Var Net Profits Margin % Investment bank ABG Sundal Collier 0% (13%) 14% Investment bank
Slide 11: Strong Results in All Divisions
Strong Results in All Divisions Trend in Net Revenues since IPO and Divisional Performance (€m) Commentary 40,8 40,9 ▪ Sales & Trading affected by the overall weak levels 37,2 31,5 33,8 of investors’ activity on equities, especially in 30,5 29,9 Var ’22-’23 22,9 19,5 +10% Small-Mid Caps trading Mark
Slide 12: Investment Banking: Plenty of Growth Opportunities
Investment Banking: Plenty of Growth Opportunities 5,1% Adjusting EKF performance in FY’22 for a very profitable mandate Revenue Pot and EQUITA market share (Italian market, €m) 6,9% 6,3% 5,1% 5,1% 2,7% 3,8% 3,3% M&A 5,1% 1.039 DCM 301 696 754 ECM 555 552 597 572 282 370 433 284 284 362 315 Market s
Slide 13: P&L and Focus on Cost Structure
P&L and Focus on Cost Structure Reclassified P&L (€m) Focus on Personnel Var % 4Q Var % FY'23 FY'22 4Q'23 4Q'22 FY’23 FY’22 Var % 23-22 23-22 Personnel Costs (1) (41,9) (42,2) (1%) Client-related 76,7 82,3 (7%) 23,3 20,8 12% Non-client (Dir. Trading) 7,4 2,7 176% 2,5 1,1 132% FTEs (End of Period) 19
Slide 14: Results since IPO
Results since IPO EZ EQUITA
Slide 15: Successful Track-Record since IPO
Successful Track-Record since IPO Net Revenues (€m) % of Net Revenues Summary of Key Initiatives Growth More balanced breakdown Proven track-record and Key Results in all areas and contribution strong execution 40,9 +34% ▪ Acquisition of Retail Hub (Brokerage 30,5 (Var ’17-’23) 19,6 & Primary Market
Slide 16: Successful Track-Record since IPO
Successful Track-Record since IPO Change since IPO Results to Date Larger Group scale 87,5 Net 53,9 ▪ Mix of initiatives contributing to Revenues +62% CAGR ’17-’23 growth, including accretive M&A (Var ’17-’23) +8% (€m) (Nexi, EQUITA K Finance…) ▪ Larger scale, to compete with 2017 (IPO) 2023 traditi
Slide 17: What's Next and Closing Remarks
What’s Next and Closing Remarks
Slide 18: What's Next
What’s Next Mitigants ▪ Higher interest rates are now digested ▪ Still difficult global environment (war, inflation, recession…) ▪ Ongoing simplification to ease access to capital markets, potentially Market ▪ Soft start of the year in terms of trading volumes on mid-small caps increasing liquidity
Slide 19: Why Us?
Why Us? Some Reasons to Invest Track record Track record in diversification, growth and remuneration of shareholders Leadership Leading positioning in Italy and increasing footprint abroad Investments Significant investments made to date, to boost growth in the future Brand Strong brand to develop n
Slide 20: Appendix
Appendix EZ EQUITA
Slide 21: Track-Record in Diversification, Growth, Remuneration and Business Transformation
Track-Record in Diversification, Growth, Remuneration and Business Transformation Evolution of Net Revenues (2008-2023) CAGR ’20-’23 CAGR ’12-’23 +9% +11% Last 12 years Higher business Global Markets CAGR ’08-’12 ’23 vs ‘12 diversification Investment Banking (10%) 90 87 88 Rev 3.1x with revenues Alt
Slide 22: Investment Banking: The Largest Contributor to Growth
Investment Banking: The Largest Contributor to Growth, with Plenty of Opportunities Offering & Expertise Key Facts Investment Banking Increasing market share in temporary decreasing fee pot size (1) Global Financing M&A & Advisory 2,7% 3,8% 3,3% 5,1% 5,1% 6,9% 6,3% 1.039 696 555 552 754 597 572 ECM
Slide 23: Investment Banking: More than 50 Mandates in 2023
Investment Banking: More than 50 Mandates in 2023 Public & Large M&A (selected credentials) Mid-Market M&A (selected credentials) Equity Capital Markets (ECM) Debt Capital Markets (DCM) 23
Slide 24: Investment Banking: an Increasing Footprint Outside Italy
Investment Banking: an Increasing Footprint Outside Italy in M&A and Corporate Finance Solid track record in the execution of cross-border M&A transactions, helping corporates and private equity funds EQUITA is exclusive member for Italy of 30+ 80% Top 20 790+ Countries M&A Advisor in Clairfield Int
Slide 25: Global Markets: Very Profitable Historical Business and High Barriers to entry
Global Markets: Very Profitable Historical Business and High Barriers to entry Offering & Expertise Key Facts GM - Client-Related Business GM - Non Client-Related ≈ 8-10% market share Institutional Retail Hub Client-Driven Trading Directional in the brokerage Sales Sales & Market Making Trading of E
Slide 26: Research Team: A Team of Experts, at the Top of International Rankings
Research Team: A Team of Experts, at the Top of International Rankings Offering & Expertise Key Facts Reports and Events 160+ Italian and Roadshows and foreign listed Equity Bond Thematic Conferences companies covered Daily, Internal Weekly, Conferences 600+ Weekly, PIR Dealing, Utilities Monthly, M
Slide 27: Alternative Asset Management: the Rising Star
Alternative Asset Management: the Rising Star, where Sky is the Limit Offering & Expertise Key Facts Illiquid Products Liquid Products Increasing mix to illiquid assets Private Private Infrastructures Liquid Strategies 1.106 Debt Equity & Renewables 980 1.019 944 57 921 891 39 100 654 49 150 200 279
Slide 28: A Reliable Partner with a Strong Brand, Committed to Sustainability
A Reliable Partner with a Strong Brand and an Improving Positioning, Committed to Sustainability Recent initiatives dedicated to sustainability The EQUITA brand ▪ Launch of a new sustainable finance team to address clients’ needs and Sustainability Report 2022 advise investors, corporates, entrepren
Slide 29: Successful Track-Record since IPO
Successful Track-Record since IPO Key Metrics 2017 (IPO) March 2024 Variation 3.3m shares distributed to professionals to: ▪ Execute M&A deals No. of shares 50.0m 51.3m +1.3m ▪ Serve incentive plans required by applicable Share regulation No. of treasury shares 4.7m 2.7m +2.0m ▪ Align interests of n
Slide 30: Balance Sheet
Balance Sheet (€m) FY’23 9M’23 1H’23 1Q’23 FY’22 1H’22 FY’21 FY’20 Cash & Cash equivalents 130.5 75.1 74.0 106.3 107.9 125.3 136.1 117.2 Financial assets at fair value with impact on P&L 77.4 99.3 95.5 90.4 111.7 79.6 49.2 43.8 Financial assets at amortized cost 101.2 122.5 144.6 128.0 99.6 97.1 91.
Slide 31: Disclaimer
Disclaimer This presentation shall be considered as confidential. It may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. The views presented herein, which do not purport to be comprehensive, are for discus
Slide 32: www.equita.eu
i lia D's EQUITA www.equita.eu