Equita Group Spa · MIL:EQUI
Equita Group Spa — STAR Conference 2021
26 slides from Equita Group Spa's conference presentation, Oct 12, 2021
Slide 1: STAR Conference First Half 2021 Results
STAR CONFERENCE FIRST HALF 2021 RESULTS October 12th – 14th, 2021 THE EXPERTS OF FINANCIAL MARKETS
Slide 2: Index
Index EXECUTIVE SUMMARY Page 3 H1’21 RESULTS (KEY FINANCIALS) Page 4 RECENT DEVELOPMENTS & INITIATIVES Page 9 OUTLOOK 2021 AND CLOSING REMARKS Page 13 APPENDIX Page 17
Slide 3: Executive Summary
EXECUTIVE SUMMARY H1’21 FINANCIAL RESULTS The strongest semester since IPO Double digit increase in client-related revenues, consolidated net revenues and net profits RECENT DEVELOPMENTS & INITIATIVES Covid-19 Business initiatives Back to a “new” normal, with a mix of remote and in-person New round
Slide 4: H1'21 Results (Key Financials)
Index H1’21 RESULTS (KEY FINANCIALS)
Slide 5: Snapshot on First Half 2021 Consolidated Results
SNAPSHOT ON FIRST HALF 2021 CONSOLIDATED RESULTS KEY CONSOLIDATED HIGHLIGHTS €46.1m €11.4m 39% €1.0bn (+58% vs H1’20) (+123% vs H1’20) (as of 30 June 2021) (+6% vs FY’20) Net Net Profits Return on Assets under Revenues (post minorities) Tangible Equity (1) Management DIVISIONAL PERFORMANCE Business
Slide 6: Divisional Performance
DIVISIONAL PERFORMANCE GLOBAL MARKETS NET REVENUES (€M) MARKET SHARES (%)(1) Client Sales & Trading Equity Business Client Driven & Market Making \ Equities Bonds Options Directional Trading 33,7 % mkt Rank (2) % mkt Rank (2) % mkt Rank (2) 30,6 30,5 29,9 31,5 +36% 24,8 share (indep. rank) share (in
Slide 7: Profit & Loss and Focus on Costs
PROFIT & LOSS AND FOCUS ON COSTS DISCIPLINED APPROACH ON COSTS AND STRONG PROFITABILITY CONFIRMED SUMMARY OF CONSOLIDATED FIGURES Focus on Costs Profit & Loss H1 H1 Var FY €m 2021 2020 % 2020 H1 H1 Net Revenues 46,1 29,1 58% 68,2 €m 2021 2020 Var. % Personnel costs (1) (21,8) (13,3) 64% Personnel co
Slide 8: Balance Sheet and Total Capital Ratio
BALANCE SHEET AND TOTAL CAPITAL RATIO LIGHT BALANCE SHEET AND HEALTHY CAPITAL STRUCTURE, WITH TOTAL CAPITAL RATIO WELL ABOVE REQUIREMENTS Equita Group (Consolidated) € m H1’21 Q1’21 FY’20 H1’20 Q1’20 FY'19 9M'19 Cash & cash equivalents 0,0 0,0 0,0 0,0 0,0 0,0 0,0 Assets at FV to P&L & Equity investm
Slide 9: Recent Developments & Initiatives
Index RECENT DEVELOPMENTS & INITIATIVES
Slide 10: Leading Position in Investors' Surveys Confirmed
LEADING POSITION IN INVESTORS’ SURVEYS CONFIRMED… EQUITA CONFIRMED ITS COMPETITIVE ADVANTAGE POST MIFID II BY RANKING AT THE TOP OF INTERNATIONAL INVESTORS’ SURVEYS AND #1 PLAYER AMONG INDEPENDENT BROKERS ALSO IN 2021 SALES & TRADING CORPORATE ACCESS Trading Execution (2) 1 Quality of Sales & Servic
Slide 11: As Well as in the Investment Banking League Tables
…AS WELL AS IN THE INVESTMENT BANKING LEAGUE TABLES ITALIAN RANKINGS KEY TRANSACTIONS (YTD 2021) (3) # (2019-2021YTD) IPO / Listing1 # deals 1. 6 2. IMI – Intesa Sanpaolo 5 IPO (€25m) IPO (€220m) RE-IPO (€225m) Capital Increase (€43m) ABB (€293m) 3. Mediobanca 5 JOINT GLOBAL JOINT GLOBAL JOINT BOOKR
Slide 12: New Products to Strengthen Our Presence in Alternative Assets
NEW PRODUCTS TO STRENGTHEN OUR PRESENCE IN ALTERNATIVE ASSETS KEY INFORMATION – EPD II KEY INFORMATION – EQUITA SMART CAPITAL ELTIF Investing in senior unitranche Hard cap €250m Target Fund €140m 8 years and subordinated bonds in size horizon Investment sponsor-led transactions, Target size €200m st
Slide 13: Outlook 2021 and Closing Remarks
Index OUTLOOK 2021 AND CLOSING REMARKS
Slide 14: Outlook 2021
OUTLOOK 2021 POSITIVE EXPECTATIONS ON FY’21 AND NEW CAPITAL REQUIREMENTS LED THE BOARD OF DIRECTORS TO CONSIDER – ABSENT SIGNIFICANT MARKET CHANGES – IN 2022 A POTENTIAL DIVIDEND DISTRIBUTION SIGNIFICANTLY HIGHER THAN THE €0.20 PER SHARE DISTRIBUTED IN 2021 1 EXPECTATIONS ON FY’21 RESULTS 2 COMPARIS
Slide 15: What to Expect in the Coming Years
WHAT TO EXPECT IN THE COMING YEARS AN IMPROVED FRAMEWORK OFFERING INTERESTING STRATEGIC OPPORTUNITIES FOR EQUITA IN THE COMING YEARS AREA OPPORTUNITY ENABLING FACTORS AND KEY DRIVERS High market shares (#1 independent broker) Increase in brokered volumes Fixed Income desk (upside potential with cros
Slide 16: Next Steps
NEXT STEPS MANY INITIATIVES TO SUPPORT FURTHER FUTURE GROWTH IN ALL AREAS AREA INITIATIVES Further coordination of Global Markets area as a whole, with clear strategy and allocation of resources Global Further diversification of product offering as well as client base, increasing resiliency Markets
Slide 17: Appendix
Index APPENDIX
Slide 18: The Leading Independent Investment Bank in Italy
THE LEADING INDEPENDENT INVESTMENT BANK IN ITALY THE LARGEST INDEPENDENT TRADING FLOOR IN ITALY COMMITTED MANAGEMENT, UNPARALLELED ACCESS TO WITH INTERESTS FULLY CAPITAL MARKETS ALIGNED TO INVESTORS Independence as differentiating factor Clear and diversified business model STRONG PROFITABILITY & TO
Slide 19: Story and Milestones
STORY AND MILESTONES Incorporation of Equita Group The management team (HoldCo which owns 100% of Incorporation of Second Private Debt Fund of Equita SIM (which Equita SIM). The management Equita Capital SGR, commitments Launch of already owns 49.5%) and acquires the majority of A. the management re
Slide 20: Clear Group Structure and Strong Management Commitment
CLEAR GROUP STRUCTURE AND STRONG MANAGEMENT COMMITMENT GROUP STRUCTURE (1) SHAREHOLDING STRUCTURE SHAREHOLDERS’ AGREEMENTS First Shareholders’ Agreement-Bis AGM 30 shareholders with 48% of share 73% 27% Voting capital (≈65%(2) of votes following the kick-in of increased voting rights) rights (2) 100
Slide 21: Business Areas
BUSINESS AREAS Global Investment Alternative Asset Research Markets Banking Management Team We are the leading independent We offer high-profile advisory in We manage - via Equita Capital SGR - Our expert analysts support all other broker in Italy. We offer to extraordinary financial transactions, l
Slide 22: Strong Positioning and Award-Winning Teams in All Areas
STRONG POSITIONING AND AWARD-WINNING TEAMS IN ALL AREAS (1) (2) Quality of Global 2° 1 1 context 2° 1° Service Market feel and 8% 8% 8% Focus on Mid 1 & Small Caps 1 knowledge Cash Fixed Equity 2021 H1’21 Equity Income Options Global 2021 1 Adding value 1 Idea generation Sales & to research Company
Slide 23: Strong Track-Record in the Execution of New Initiatives
STRONG TRACK-RECORD IN THE EXECUTION OF NEW INITIATIVES LEGACY BUSINESS VS NEW INITIATIVES (NET REVENUES FY’09 VS FY’20) Retail Hub €68m €68m Market Making 6 Fixed Income sales Investment Banking Global Markets New M&A & Advisory €36m Alt. Asset Management 38 Debt Capital Markets 34 €36m Initiatives
Slide 24: Resilient and Profitable Performance Thanks to Diversification
RESILIENT AND PROFITABLE PERFORMANCE THANKS TO DIVERSIFICATION NET REVENUES (€M) +6% CAGR ‘09-’20 in Net Revenues over the last 12 years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Global Markets Investment Banking Alternative Asset Management NET PROFITS (€M) Always profitable, with
Slide 25: Road to 2022: Targets Likely to Be Reached One Year in Advance
ROAD TO 2022: TARGETS LIKELY TO BE REACHED ONE YEAR IN ADVANCE TOP 5 PRIORITIES KEY TARGETS FROM 2020-2022 STRATEGIC PLAN (@2022) GM €30m-34m Revenue Generation and Net Revenues 1 IB €30m-34m Diversification €75m AAM €8m-12m Cost Discipline and -500 bps in Cost/income 2 Focus on Profitability ≈20% N
Slide 26: GLOBAL MARKETS | INVESTMENT BANKING | ALTERNATIVE ASSET MANAGEMENT | RICERCA
Via Turati, No. 9 | Milan | 20121 Tel. +39 02 6204.1 | Fax +39 02 29001208/1202 ir@equita.eu | info@equita.eu | www.equita.eu GLOBAL MARKETS | INVESTMENT BANKING | ALTERNATIVE ASSET MANAGEMENT | RICERCA