Peel Hunt Limited · LSE:PEEL
Peel Hunt — H1 2022 Earnings Presentation
27 slides from Peel Hunt's earnings presentation, December 2021
Slide 1: Half Year Results Presentation for the Six Months Ended 28 September 2021
_ << the a a SS HALF YEAR RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 28 SEPTEMBER 2021 December 2021
Slide 2: Agenda
Agenda 01 02 03 04 05 06 H1 22 Highlights Business Update Financial Update Current Trading & Outlook QA Appendices
Slide 3: Section 1: H1 22 Highlights
Slide 4: H1 Highlights
H1 22 Highlights ® 1 Overall: On track to meet market expectations. 2 7 Investment Banking: Record results, with revenue up 43% to £32.7m. 15% £ 1 ° 4m increase in average market cap of clients. Revenue (HI 22) 3 Research & Distribution: Revenue up despite challenging market. Growth \ in number of r
Slide 5: Financial Highlights
Financial Highlights ® Revenue 28" September 2021 £71.4m 30‘ September 2020 £93.2m Change (23.4%) Illustrative profit before tax! 28 September 2021 30° September 2020 £21.6m £33.1m Change (34.7%) Illustrative profit after tax! 28 September 2021 —__30"* September 2020 £16.3m £26.0m Change (37.3%) Ill
Slide 6: Operational Highlights
Operational Highlights ® Investment Banking clients 28" September 2021 30‘ September 2020 Change 158 150 5.3% Average market cap of clients 28 September 2021 30 September 2020 Change £731.2m £632.6m 15.6% Cash 28 September 2021 —__30"* September 2020 Change £77.0m £72.9m 5.6% Net Assets 28" Septembe
Slide 7: Section: Business update
SECTION 2 Business update
Slide 8: Investment Banking Overview
150 158 140 H1 2020 H1 2021 H1 2022
Slide 9: Research & Distribution Overview
Research & Distribution Overview ® Research @ Distribution revenue (£m) £19.6m £14.7m, H120 H220 H121 H221 H122 RPA © Institutional mi International Commentary Revenue from research payments and execution commissions grew by 3.5% compared with H1 21. Achieved in the face of a challenging market, whi
Slide 10: Execution & Trading Platform Overview
Execution & Trading Platform Overview ® Execution @ Trading revenue (£m))) Commentary Execution @ Trading revenue in H1 22 was significantly => lower than H1 21, which had been buoyed by elevated volumes and volatility amid market-wide uncertainty at H1 20 H121 Hi 22 the onset of the pandemic. £13.7
Slide 11: ESG at Peel Hunt: Community, Diversity & Sustainability
ESG at Peel Hunt: Community, Diversity & Sustainability ® Committed to being a responsible business in terms of our staff, our community and our environment ry 29% of Board (40% of NEDs) are women vs average of 15% for AIM £ listed companies ag As of Sep’21, 24.3% of Peel Hunt’s staff is female DIVE
Slide 12: Section: Financial Update
SECTION 3 Financial Update
Slide 13: Revenue Overview
Revenue Overview @® Revenue by division Revenue bridge As at 28 September H12022 0 -H12021 Change +0 £m - 5 110 Investment Banking fees 28.8 19.4 48.5% 94m 0.5m = -£04m——£0.1m Investment Banking retainers 3.9 3.4 14.7% 100 || Investment Banking Revenue 32.7 22.8 43.4% E £93.2m 4 90 Execution commiss
Slide 14: Operating Costs Overview
Operating Costs Overview ® Staff costs (Actual) 50.4% 48.2% £22.6m £23.3m £10.4m H120 H2 20 H12t H221 H1 22 mmm Staff Cost ine Bonus (£m) mmm Members Remuneration Expense (£m) mm One-off Cost (£m) cm Comp Ratio (9) Commentary Staff costs (not including partner profit share) in H1 22 were marginally
Slide 15: Balance Sheet & Capital Position Overview
Balance Sheet & Capital Position Overview ® Cash Position and Net Asset Value £A7.Sm. £45.5m. £103.4m H120 H220 H121 H221 H1 22 mmm Cash Position (£m) | —-O—Net Assets (£m) Commentary => Net assets remained strong at £50.0m as at 28 September 2021, which is consistent with H1 21. Pillar 1 coverage o
Slide 16: Unaudited Illustrative Consolidated Income Statement
Unaudited Illustrative Consolidated Income Statement @® Unaudited for the six months ended 28 September 2021 The unaudited illustrative consolidated income statement set out below has been prepared to illustrate the impact that the reorganisation of the Group’s corporate structure, and the IPO, woul
Slide 17: H1 21/22 Illustrative Financials
H1 21/22 Illustrative Financials Moving from a partnership to public shareholder structure ® Pre-IPO Group As at 28 September H1 2022 Hi 2021 Six Six 7 months — months e000 ended ended £000 £1000 Research & distribution 14,665 14,171 Trading platform 24,017 56,223 Investment banking 32,673 22,813 Re
Slide 18: H1 Illustrative Group Profit Reconciliation
H1 22 Illustrative Group Profit Reconciliation @® Administrative Expenses! r i I 1 f 1 Include: | Exclude:Tax Include: Post Audit - " I Ms Include: , ost Audit- | Revised Exclude: One! charges in Additional include: Illustrative - Group , , ° Illustrative 40% ‘compensation off expenses’! respect of
Slide 19: Section: Current Trading & Outlook
SECTION 4 Current Trading & Outlook
Slide 20: Current Trading and Outlook
Current Trading and Outlook ® EXECUTION & TRADING RESEARCH & DISTRIBUTION INVESTMENT BANKING Revenues since IPO continue to be in line with H1 22. Trading volumes have remained higher than before the pandemic, although lower than the extraordinarily high volumes we saw from the start of the pandemic
Slide 21: Section 5: Q&A
Slide 22: Section 6: Appendix
Slide 23: Consolidated Income Statement
Consolidated Income Statement Unaudited for the six months ended 28 September 2021 Income statement H1 2022 H1 2021 Change £000 28Sep 21 30Sep 20 Research payments @ Execution commission 14,665 14,171 3.5% Execution & Trading Revenue 24,017 56,223 (57.3%) Investment Banking fees and retainers 32,673
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet Unaudited for the six months ended 28 September 2021 Balance Sheet H1 2022 H1 2021 Change £1000 28Sep21__30Sep 20 Non-current assets 29,863 24,715 20.8% Long positions of dealing operations 67,067 48,664 37.8% Market and client debtors 484,578 352,701 37.4% Other debtors a
Slide 25: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Unaudited for the six months ended 28 September 2021 Cash Flow H12022 -H12021 Change £1000 28Sep21__30Sep 20 Net cash generated from operations (30,930) 42,169 (173.3%) Cash flows from investment activities Purchase of tangible assets (1,026) (1,013) 1.3% Purchas
Slide 26: Regulatory Consolidation Group Capital Position
Regulatory Consolidation Group Capital Position Unaudited for the six months ended 28 September 2021 Pillar 1 Capital Position H12022 © -H12021 — Change £000 28 Sep 21 30Sep 20 Total own funds 78,868 73,774 6.9% Market risk 14,088 10,890 29.4% Settlement risk 923 1,438 (35.8%) Credit risk 4,672 4,39
Slide 27: Office Addresses
Office Addresses Peel Hunt Limited Peel Hunt Inc. 100 Liverpool Street 489 Fifth Avenue, 324 Floor London New York EC2M 2AT NY 10017 T: +44 (0)20 7418 8900 T: +(1) 646 863 1400 E-mail: info@peelhunt.com E-mail: info@us.peelhunt.com Disclaimer Certain statements included or incorporated by reference