Slide 1: Record Financial Group Investor presentation pack
J =F record Listen Understand Deliver 28 June 2024 Recordfg.com Record Financial Group Investor presentation pack
Slide 2: Disclaimer
Disclaimer IMPORTANT INFORMATION This document does not constitute an offer to sell or an invitation to buy shares in Record plc or any other invitation or inducement to engage in investment activities. Certain statements, beliefs and Opinions in this document are forward-looking, which reflect the
Slide 3: FY24 Headlines
FY24 Headlines * AUM $102.2bn +17% 4 New leadership with changes aligned to succession plans + Revenue £45.4m +2% 4+ Refocused product suite to six core product categories + Underlying Op margin 32% 4 Launch of new asset management products + Underlying PBT £14.8m +1% 4+ Strong foundation for growth
Slide 4: Agenda
Listen Uno Agenda About Record Business Strategy Update Financial Performance & Outlook
Slide 5: About Record
About Record Founded in 1983 and publicly listed on the LSE Group manages over $100bn of assets for over 100 institutional clients worldwide Over 100 group employees spread across office in London, Windsor, Zurich, Frankfurt and Amsterdam Regulated by the FCA in the UK, the SEC and CFTC in the US, a
Slide 6: Client Longevity
Client Longevity Bespoke approach and performance encourages longevity Client longevity as at 31 March 2024 (Numbers) Client longevity as at 31 March 2024 (AUM) 8% =™0-1years =0-1years =1-3 years =1-3 years =3-6years =3-6years =™6-10 years =™6-10 years >10 years >10 years 4F record | 6
Slide 7: Agenda: Business Strategy Update
J =F record Listen Understand Deliver Recordfg.com Agenda Business Strategy Update
Slide 8: Products and Services
Products and Services Renewed focus on core products and services + Record is a specialist asset manager offering both Risk Management and For-Return products to large institutional investors + We have refocused on six distinct product categories where we can offer a unique value proposition and whe
Slide 9: Trends in Addressable Markets
Trends in Addressable Markets Currency Management Asset Management Strong Growth in AUM of Pension Funds (USSbn) Strong Growth in Private Market Asset Allocations (USStn) 20 $35,600 1s $3,206 $20,285 $2,895 10 $9,942 $1,261 $1,361 5 $809 a_i _ |_| ° us UK Switzerland 2010 2015 2023F Private Equity =
Slide 10: Management and Strategic Evolution
Management and Strategic Evolution Organic Growth + Grow established products by addressing institutional clients’ unique requirements in times of macroeconomic change + Expansion of US Team + New Leadership in EM & Frontier 4 Grow higher-margin products by benefitting from multi-decade trends in ba
Slide 11: Agenda: Financial Performance
J =F record Listen Understand Deliver Recordfg.com Agenda Financial Performance
Slide 12: Financials: KPIs
Financials KPIs Operating margin Profit before tax (£m) AUM (Sbn) Revenue (Em) (underlying) (underlying) 110.0 50.0 427% +2% 34% +17% 20.0 100.0 41% = -% 40.0 32% +34% +1% 90.0 +6% 30% 15.0 30.0 28% 80.0 10.0 20.0 26% 31% 70.0 35.1 83.1 24% so | 109 10.0 60.0 22% 50.0 - 20% - FY22 FY23. FY24 FY22 FY
Slide 13: Financials: AUM movement
Financials AUM movement AUM bridge for the year ended 31 March 2024 (Sbn) 110.0 105.0 6.9 100.0 95.0 90.0 85.0 80.0 75.0 70.0 AUM 01 April 2023 Net flows Equity & FX & scaling AUM 31 Mar 2024 other markets adjustment 4F record |
Slide 14: Financials: Income statement
Financials Income statement FY22 FY23 FY24 £m Em £m Management fees 34.1 38.3 38.7 Performance fees 0.5 5.8 5.8 Other currency services income 0.6 0.6 0.9 Total revenue 35.2 44.7 45.4 Cost of sales (0.2) - (0.1) Gross profit 34.9 44,7 45.3 Administrative expenses (23.7) (29.9) (30.7) Other income an
Slide 15: Financials: Cash
Financials Cash Cash bridge for the year ended 31 March 2024 (£m) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Group cash at EBITDA Tax paid Other/ non-cash items Dividends paid Group cash at 01 April 2023 31 March 2024 4F record | 15
Slide 16: Balance Sheet and Capital
Balance Sheet and Capital + Balance Sheet 4 Maintain sufficient capital and liquidity headroom over regulatory requirements + Maintain liquidity level sufficient to support investment opportunities and requirements + Organic Investment + Maintain market leading technology and infrastructure as core
Slide 17: Financial Outlook
Financial Outlook 4 Strong cash generation and robust capital position provide a solid platform for improved quality of earnings, revenue growth and margin expansion over the medium-term + Expect management fees to be broadly flat for FY25 reflecting full-year impact of headwind due to client mandat
Slide 18: Agenda
ar record Listen y — sc’ | Agenda About Record Business Strategy Financial Performance & Outlook
Slide 19: Summary
Summary + We area specialist asset manager offering best-in-class products to large global investors + Renewed focus on six core product categories + Strong cash generation and robust capital position provides solid platform for supporting organic growth % Start FY-25 with highest ever AUM and stron
Slide 20: Appendices
ar record Listen Understand Deliver Appendices
Slide 21: AUM Evolution
AUM Evolution M by Product (Sbn) 100.0 90.0 80.0 70.0 60.0 - i 40.0 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 ™Passive Hedging ™HedgingforAssetManagers ™DynamicHedging ™FX Alpha ™EM and Frontier Custom Solutions & Other Source: Record Currency Management Limited. Note: AUM data are as at 28" March 2024. 4F
Slide 22: Financials: Management fee analysis
Financials Management fee analysis — change in revenue mix £23.1m £24.9m £34.1m £38.3m £38.7m FY20 FY21 FY22 FY23 FY24 ™ Passive Hedging @ Hedging for Asset Mangers @ Dynamic Hedging FX Alpha ™E€M and Frontier Custom Solutions 4F record | 22
Slide 23: Financials: Client concentration
Financials Client concentration Revenue AUM (Sbn) Clients 1-10 51.3 33.7 74% Clients 11-20 23.6 5.4 12% Other 27.3 6.3 14% Total 102.2 45.4 100% 4F record |
Slide 24: Sustainability at Record
Sustainability at Record Our approach to sustainability is integrated within our governance, investment and risk management processes. Responsible investment Climate action Our people Investment in bonds issued by development finance Renewable energy across all offices globally New gender diversity
Slide 25: Record plc Board of Directors
Record plc Board of Directors Executive Management Dr Jan Witte Chief Executive Officer * Joined record in 2012. Was Global Head of Sales between 2021 and 2023 and CEO of Record Currency Management Limited from May 2023. * — Janwasa postdoctoral researcher in Maths at Oxford University and completed
Slide 26: Record AM Products
Record AM Products | Fund | Rationale =| Start launch | EMSF Infrastructure GP Stakes Protected Equities Liquid Credit Solutions Emerging Market Sustainable Finance is an EM debt strategy which invests in currencies of emerging and frontier markets and in bonds issued by MDB's and sovereigns, within
Slide 27: Record Financial Group: Journey so far
Record Financial Group Journey so far * — Record Currency Management (RCM), a leading currency management firm, was established over 40 years ago in 1983 by Neil Record * — Record Asset Management (RAM) was established in 2020 to offer best in-class cross-asset client solutions to Institutional and
Slide 28: Regulation
Regulation Record Currency Management Limited: + Authorised and regulated by the Financial Conduct Authority. + Registered as Investment Adviser with the Securities and Exchange Commission. + Registered as Commodity Trading Adviser with the Commodity Futures Trading Commission. 4 Exempt Internationa
Slide 29: Dynamic Hedging Performance
Dynamic Hedging Performance Value added by Dynamic Hedging programme for a representative US-based account April 2009 - March 2024 Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Mar 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Record Hedging Return (cum.) — Cur
Slide 30: Currency Multi-Strategy (FX Alpha) Performance
Currency Multi-Strategy (FX Alpha) Performance Currency Multi-Strategy composite performance since strategy inception AUD base; 4% expected volatility; 31 July 2012 - 28 March 2024 £ = @ a a a g x a un a re) 00 ra > z = = 5 S ) Jul Mar Nov Jul. Mar Nov Jul Mar Nov Jul Mar Nov Jul Mar Nov Jul Mar Nov
Slide 31: Emerging Markets Sustainable Finance Performance
Emerging Markets Sustainable Finance Performance Record Emerging Markets Sustainable Finance vs. Emerging Market Indices USD; June 2021 - March 2024 20% Outperformance 10% 0% -10% a 2 o e 7] ]” -20% -30% Jul Jan Jul Jan Jan 2021 2022 2022 2023 2024 == Record EM Sustainable Finance JPM EMBIGD (EM har