Equita Group Spa · MIL:EQUI
Equita Group Spa — Italian Excellences Mid Corporate Conference 2024
33 slides from Equita Group Spa's conference presentation, Oct 8, 2024
Slide 1: EQUITA Group 1H'24 Financial Results
EQUITA Group 1H’24 Financial Results (as of 30 June 2024) Italian Excellences Mid Corporate Conference October 8th, 2024 - Paris 1
Slide 2: Agenda
Agenda 1. EQUITA at a glance 2. 1H’24 financial results and recent initiatives 3. What’s next and closing remarks 4. Appendix
Slide 3: Who we are: the leading independent Italian investment bank
Who we are: the leading independent Italian investment bank The most respected independent partner in Italy for investors, institutions, corporates and entrepreneurs, with a fifty-year history, listed on the Italian Stock Exchange and managed by a partnership of committed professionals EQUITA in a N
Slide 4: 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 with
Slide 5: Our unique business model and what we bring to the table
Our unique business model and what we bring to the table The Group acts as broker, financial advisor and alternative asset management platform, and offers a full range of services to investors, corporates and institutions Building blocks of the “EQUITA” model 41% 47% 12% Investment Global Research A
Slide 6: The leading independent broker in Italy
The leading independent broker in Italy Our team has always been at the top of investors’ preferences for its outstanding research – especially on small & mid-caps – and its trading, execution, sales and corporate access services Available rankings for the last 10 years 2° #1 2° 2° 2° Independent Ov
Slide 7: 1H'24 financial results and recent initiatives
1H’24 financial results and recent initiatives
Slide 8: 1H'24 performance benefitting from a good set of results in 2Q'24
1H’24 performance benefitting from a good set of results in 2Q’24 Key Consolidated Highlights €40.9m €8.1m 1H (-5% YoY) (+1% YoY) Net Revenues Net Profits 25% 3.6x 192 (23% in 1H’23) (3.7x in 1H’23) (-2% YoY) €23.7m (+1% YoY) €5.1m (+19% YoY) Return on Tangible IFR # of Professionals 2Q Equity (ROTE
Slide 9: Improving environment in Italy, but still weak levels of activity
Improving environment in Italy, especially for S&T and large M&A, but still weak levels of activity on small-mid caps and in ECM. Potential turning point expected in the next months Third Parties Brokered Volumes in Italy (1) Equity – Euronext Milan Equity – Euronext Growth Milan (EGM) Fixed Income
Slide 10: Strong positioning confirmed by recent achievements and initiatives
Strong positioning confirmed by recent achievements and initiatives, in all areas 75 Summary of Recent Initiatives and Key Developments per Division Votes % 18 93% of votes in the 5-4 range (Excellent) received in 2024 % 5% 1% 1% (score) Market shares (1) 5 4 3 2 1 1 2 3 15 % Markets High market Glo
Slide 11: Improving market environment, not yet contributing materially to revenues
Improving market environment, still not contributing materially to the revenues of all divisions Trend in Net Revenues since IPO 1H / 2Q Performance (€m) Commentary Var % 40,3 37,2 40,9 +3% ▪ Double-digit growth in S&T thanks to high 30,5 29,9 31,5 33,8 Var % Var ’22-’23 +18% volumes on Italian bank
Slide 12: Disciplined approach on costs confirmed
Disciplined approach on costs confirmed Key Consolidated Highlights Focus on Personnel Costs 1H’24 1H’23 Var % 2Q’24 2Q’23 Var % 1H’24 1H’23 Var % Personnel Costs (1) (18,9) (20,0) (6%) Net revenues 40,9 42,8 (5%) 23,7 23,5 1% FTEs (End of Period) 192 195 (2%) Total Costs (1) (29,3) (31,2) (6%) (16,
Slide 13: What's next and closing remarks
What’s next and closing remarks
Slide 14: Considerations about the next months
Considerations about the next 18 months ▪ Soft-landing or no-landing scenario for all major economies Market ▪ Decrease in interest rates and expansionary monetary policies scenario ▪ Further progress in institutional initiatives to ease access to capital markets and increase liquidity in financial
Slide 15: Widespread institutional effort to promote capital markets
Widespread institutional effort to promote capital markets Commitment at European Level Commitment at Italian Level What’s Next? CMU Publication of the “Libro Verde” and consultations ▪ Fund of funds promoted by Action TESG with market players, legal experts and associations CDP/Ministry of Plan Eco
Slide 16: A lot of initiatives and investments made. What's next
A lot of initiatives and investments made. What’s next Key Investments Completed (last 3 years) What to Expect in the Future Global ▪ Diversification of the product offering (bonds, certificates, derivatives, US ▪ Equity volumes on mid-small caps expected to recover Markets equities…), new team dedi
Slide 17: Successful track-record since IPO
Successful track-record since IPO Focus of Net Revenues (€m) 87,5 Alt. Ass. Var ’17-’23 CAGR ’17-’23 10,4 3.25x +21% Management Growth in Net Revenues 53,9 36,3 3,2 Investment Var ’17-’23 CAGR ’17-’23 driven by the 1.80x +10% Banking positive contribution 20,2 of all business divisions 40,9 Global V
Slide 18: 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 19: Appendix
Appendix =EQUITA
Slide 20: Track-record in diversification, growth, remuneration and business transformation
Track-record in diversification, growth, remuneration and business transformation Evolution of Net Revenues (2008-2023) Global Markets CAGR ’20-’23 Investment Banking CAGR ’12-’23 +9% CAGR ’08-’12 +11% Last 12 years Higher business (10%) Alt. Asset Management ’23 vs ‘12 diversification 90 87 88 FTEs
Slide 21: 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 22: 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) 22
Slide 23: 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 80% for Italy of Clairfield Cross-border Top 10 International, the globa
Slide 24: 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 25: 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 26: 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 57 955 993 49 39 100 110 654 150 279
Slide 27: 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 Voluntary CSR Report 2023 advise investors, corporates, entreprene
Slide 28: 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% 30,5 ▪ Acquisition of Retail Hub (Brokerage (Var ’17-’23) 19,6 & Primary Market
Slide 29: 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 30: Successful track-record since IPO
Successful track-record since IPO 2017 (IPO) October 2024 Variation Majority of shares distributed to professionals to: ▪ Execute M&A deals No. of shares 50.0m 52.9m (1) +2.9m ▪ Serve incentive plans required by applicable Share regulation No. of treasury shares 4.7m 2.6m +2.1m ▪ Align interests of
Slide 31: Healthy balance sheet, with capital ratios well above minimum requirements
Healthy balance sheet, with capital ratios well above minimum requirements (€m) 1H’24 1Q’24 FY’23 9M’23 1H’23 1Q’23 FY’22 1H’22 FY’21 FY’20 Cash & Cash equivalents 90.5 87.5 130.5 75.1 74.0 106.3 107.9 125.3 136.1 117.2 Financial assets at fair value with impact on P&L 94.0 102.0 77.4 99.3 95.5 90.4
Slide 32: 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 33: www.equita.eu
=EQUITA www.equita.eu
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