Investec Plc · LSE:INVP
Investec — Investec Wealth & Investment — Q2 2024 Earnings Presentation
17 slides from Investec's earnings presentation, Jul 24, 2024
Slide 1: AIMing to save inheritance tax?
AIMing to save inheritance tax? AIM IHT Q2 24 update 24 July 2024 This presentation is intended for professional advisers only. Our AIM IHT service is a high risk, long-term investment. 1
Slide 2: Contents
Contents slide 1 Overview AIM IHT Q2 2024 update 2 Q2 performance and drivers 3 Macro Commentary 2
Slide 3: Overview
Overview 3
Slide 4: Investec AIM IHT Plan highlights
Investec AIM IHT Plan highlights 5.1% 75% £742m Net annualised return of the risk of the market leading proposition over 10 years in AIM The Plan has a 21-year track record The standard deviation The second largest AIM IHT provider of performance. The average net 12 (volatility) of our annual return
Slide 5: Our philosophy
Our philosophy • Experienced management team • 5 years trading and quoted for at least a year Investing in Quality FTSE AIM AIM IHT plan Allshare* Relative • Distinctive capabilities Gross Margin 43% 32% 11% • Proven financial track record Return on Capital Employed 18% 10% 8% with dividends FCF yie
Slide 6: IW&I AIM plan
IW&I AIM plan Estimated revenue split for portfolio Market Cap of AIM IW&I plan Africa Asia 3% £0-£100m 3% 11% £101m - £250m 30% £251m - £500m 24% Europe UK £501m - £750m 22% 44% Avg £516m 18% £751m -£1bn 11% £1bn+ 11% Has been 0% 5% 10% 15% 20% 25% 30% 35% reducing, Sector Allocation v FTSE AIM All
Slide 7: Q2 performance and drivers
Q2 performance and drivers 7
Slide 8: AIM Portfolio IHT plan Q2
AIM Portfolio IHT plan Q2 24 Performance against benchmarks (total returns) IW&I calculates performance based on actual average client Period / benchmark 10 yrs 5 yrs 3 yrs 1 yr Q2 24 returns after all our fees IHT Planner clients 50.6% -5.6% -24.1% 8.3% 4.6% Comparison with modelled or sampled retu
Slide 9: AIM IHT market drivers Q2
AIM IHT market drivers Q2 24 IW&I - Top Overall Contributors • Top three contributors in the Index Index quarter from bids/bid EPIC Stock name Weighting Performance Contribution weighting contribution Difference speculation. KWS-LON Keywords Studios plc 2.43% 77.57% 1.89% 1.47% 1.14% 0.74% Alpha Fin
Slide 10: Macro drivers
Macro drivers 10
Slide 11: Fund flows drive returns!
Fund flows drive returns! UK Smaller Companies 400 25 One of the main reasons why 300 AIM stocks have 200 20 underperformed other indices over the past few Funds under management 100 15 years. Total sales 0 10 -100 33 months of consecutive redemptions from the UK -200 5 Smaller Companies space -300
Slide 12: Transactions in last 12 months
Transactions in last 12 months AIM has been a PE/trade buyers area of focus High quality assets are cheap valuations Premiums still not as attractive as they once were, averaging 30 – 40% of undisturbed price. Source: Investec Bank PLC May 2024 12
Slide 13: The AIM market
The AIM market IPO's and IPO cash raised per year Equity placings and cash raised per year 100 9000 600 8,000 90 8000 7,000 80 500 7000 70 6,000 6000 60 400 5000 5,000 50 4000 300 4,000 40 3000 30 3,000 2000 200 20 1000 2,000 10 100 0 0 1,000 0 0 2017 2018 2019 2020 2021 2022 2023 2024 Average IPOS
Slide 14: Why is this happening?
Why is this happening? The usual responses from Executive management/Boards - Provides immediate opportunity to realise growth in share price - Lengthening of the sales cycle – customers are taking longer to place orders/make decisions on projects - The share price does not reflect the growth potent
Slide 15: FTSE AIM Allshare, CB Bank Rate, Inflation
FTSE AIM Allshare, CB Bank Rate, Inflation Lots of macro drivers over last four CPIH years Covid-19 sell off Temporary to persistent inflation Initial sell off in the market due to 140 12 COVID-19, a “V” shaped recovery 130 before Aug 21 high. 10 120 Central bank rhetoric changed from 8 temporary to
Slide 16: Thank you
Thank you 16 Confidential | Investec Wealth & Investment (UK)
Slide 17: Important information on investment value and regulation
Please note that the value of investments and the income derived from them may fluctuate and investors may not receive back the amount originally invested. Past performance of an investment is no guide to its performance in the future. Current tax levels and reliefs may change and the investments an
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