Moelis & Company · NYSE:MC
Moelis & — Q1 2021 Earnings Presentation
18 slides from Moelis &'s earnings presentation, Apr 28, 2021
Slide 1: Moelis & Company April 2021
MOELIS & COM PANY April 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, which reflect the Firm’s current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,”
Slide 3: Premier Global Independent Investment Bank
Premier Global Independent Investment Bank Global footprint — 22 geographic locations in the Americas, Europe, the Middle East, Asia and Australia Trusted advisor — Focus on M&A, Restructuring, Capital Solutions, Capital Markets and Private Funds Advisory — Expertise across all major industries
Slide 4: Moelis & Company Milestones
Moelis & Company Milestones Founded and Raised Growth Capital from Global Institutional Investors 2007 – 2008 Hired Restructuring Team Established European Business 2009 – 2010 Formed Joint Venture in Australia Japan Alliance with SMBC/SMBC Nikko & $93 Million Investment Entered Hong Kon
Slide 5: Our Business: Relationships, Judgment and Experience
Our Business: Relationships, Judgment and Experience Global footprint to serve client needs with approximately 620 bankers ¹ Amsterdam, NL London, UK Frankfurt, DE Chicago, US Boston, US Paris, FR San Francisco, US New York, US Beijing, CN Washington, DC, US Japan Los Angeles, US Houston, US Tel Avi
Slide 6: Recent Transactions with Marquee Clients
Recent Transactions with Marquee Clients $27.6bn & $500mm $29.4bn Reinsurance of In-force Fixed and $85.1bn $48bn $16.2bn (Incl. Greenshoe) Fixed Indexed Annuity & Strategic Acquisition of Twenty-First CBS and Viacom Minority Equity Investment Century Fox, Inc. All-Stock Merger Initial Public Offeri
Slide 7: Fully Integrated Advisory Platform
Fully Integrated Advisory Platform Mergers & Acquisitions Consumer & Retail Recapitalization & Energy, Power & Restructuring Infrastructure Capital Structure Advisory Financial Institutions Capital Markets Financial Sponsors Product Industry SPAC Advisory General Industrials Expe
Slide 8: Compelling Investment Opportunity
Compelling Investment Opportunity Differentiated model — Strong partnership culture — One-Firm philosophy with one global P&L — Focus on internal development Strong, asset light balance sheet with no debt and no goodwill Durable model with premier restructuring and M&A franchises and a growing
Slide 9: Differentiated Model
Differentiated Model Global partnership approach One firm P&L (non commission-based compensation) Global Collaboration Optimal structure for client advice and talent development Ability to quickly pivot resources to new business opportunities related to the market uncertainty caused by COVID
Slide 10: Strong Record of Organic Growth
Strong Record of Organic Growth MOELIS & COMPANY REVENUES ($MM) $943 $1,053 $886 $747 $685 $613 $552 $519 $386 $411 $268 Market 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LTM Metrics Q1 2021 M&A Y-o-Y Change 1 13.7% (3.0%) (4.0%) 11.9% (4.5%) (6.9%) (1.2%) (3.4%) (8.0%) (2.1%) 17.6% Default R
Slide 11: Long-Term Growth Drivers
Long-Term Growth Drivers Leading Restructuring Growing Capital Markets Premier M&A Franchise Business Team Continued strength in M&A Record year of activity in 2020 Record year of activity in 2020 activity from Q4 o 5th consecutive year of Added 2 senior hires with New business M&A activit
Slide 12: Fortress Balance Sheet and Disciplined Capital Management
Fortress Balance Sheet and Disciplined Capital Management Strong financial position — Cash and liquid investments of $228 million 1 — No debt — No goodwill Minimal capital requirements Commitment to return all excess capital to shareholders through dividends, special dividends and share repurc
Slide 13: Moelis & Company: Leading Dividend Yield
Moelis & Company: Leading Dividend Yield $6.00 11.0% 10.3% 10.1% 9.6% 10.0% $5.00 $4.66 8.9% 7.6% 9.0% $4.08 $4.00 $3.44 8.0% 6.5% $2.75 $3.00 $2.76 7.0% $2.56 $2.50 4.9% $0.75 $2.00 6.0% $2.00 $1.90 $1.60 $1.25 $0.80 5.0% $1.00 $1.00 $2.01 $1.91 $1.31 $1.58 $1.44 4.0% $1.10 $0.60 $- 3.0% 2014 2015
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of GAAP to Adjusted (non-GAAP) Financials
Reconciliation of GAAP to Adjusted (non-GAAP) Financials Three Months Ended March 31, 2021 Adjusted ($ in thousands) U.S. GAAP Adjustments (non-GAAP) Revenues $263,866 - $263,866 Expenses Compensation and Benefits $156,499 $(25)¹ $156,474 Non Compensation Expenses $34,924 - $34,924 Total Operating E
Slide 16: Quarterly Revenue Summary
Quarterly Revenue Summary QUARTERLY REVENUE (Q1 2016 – Q1 2021) ($MM) $422 $264 $238 $232 $219 $220 $224 $205 $208 $208 $173 $172 $170 $169 $154 $154 $160 $151 $132 $138 $126 $126 $132 $151 $205 $173 $172 $170 $169 $219 $220 $208 $238 $138 $154 $232 $224 $154 $160 $208 $422 $264 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 17: Share Count Breakdown
Share Count Breakdown For the Three Months ended March 31, 2021 (shares in millions) 80.0 5.4 74.6 5.7 2.6 70.0 60.9 60.0 50.0 40.0 30.0 20.0 4 Basic Class A Class A Partnership Class A Partnership Unvested RSUs Diluted Class A Common Shares 1 Units Held by EOs & Units Held by Pre-IPO Shares / Excha
Slide 18: Historical Deal Distribution by Transaction Size
Historical Deal Distribution by Transaction Size 100% 5% 10% 14% 9% 11% 17% 13% 80% 18% 28% % of Total Deal Count 31% 33% 25% 29% 60% 27% 21% 14% 17% 21% 40% 57% 46% 42% 20% 41% 38% 32% 0% Moelis Evercore Greenhill Houlihan Lazard PJT $100mm - $500mm $500mm - $1.0bn $1.0bn - $5.0bn > $5.0bn Source: