Slide 1: Diversified Resilient Dynamic: Q3 2024 Results
Diversified Resilient Dynamic Q3 2024 Results November 7, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking
Slide 3: Marex Plays an Essential Role in Connecting Clients to Commodity and Financial Markets
Marex Plays an Essential Role in Connecting Clients to Commodity and Financial Markets Illustrative Clients Clearing Services Hedging and Agency & Investment Execution Solutions Market Making 3
Slide 4: Our Track Record of Delivering Sequential Growth
Our Track Record of Delivering Sequential Growth $240 $230 CAGR: ~34% $122 $80 $62 Adjusted Operating Profit ($m)1 $16 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3 YTD 2024 Clients2 ~1,100 ~2,000 ~2,700 ~4,100 ~5,200 Staff3 ~570 ~730 ~1,600 ~2,000 ~2,300 Exchanges 10 48 51 58 60 Offices 8 19
Slide 5: Key Messages
MAREX" Key Messages lan Lowitt, CEO
Slide 6: Key Highlights
Key Highlights • Delivered strong performance in Q3 2024: Continued positive momentum across all business segments during the third quarter supported by a positive market backdrop and continued growth in exchange volumes in both commodities and financials. • Upgraded guidance for full year 2024: Due
Slide 7: Delivering Strong Progress In Our Key Metrics In Q3 2024
Delivering Strong Progress In Our Key Metrics In Q3 2024 Revenue Adjusted Operating Profit1 Adjusted Operating PAT Attr. to Common Equity1 ($m) ($m) ($m) 32% 52% Growth 391 81 66% 297 53 58 35 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Adjusted Operating Profit Margin1 Reported ROE Return on Ad
Slide 8: Growth In Market Volumes
Growth In Market Volumes Strong growth in commodity market volumes, particularly in metals Exchange Contracts by Asset Class (bn) 10.2% 12.2 13.0% 11.6 10.2 10.1 • Metals +29% 9.0 Commodities +22% • Energy +24% 2.0 • Agriculture +11% 1.7 Financials +11% 8.2 7.4 Q3 YTD 2023 Q3 YTD 2024 Financials Com
Slide 9: Operating Environment
Operating Environment • 2022 was characterised by elevated volatility and higher commodity prices following the Ukraine Invasion • In 2023 and 2024 YTD, volatility and commodity prices have returned to more normalised levels • Federal Funds rate forward curve reflects anticipated rate cuts through 2
Slide 10: Increasing Client Activity and Share Gains on the Marex Platform
Increasing Client Activity and Share Gains on the Marex Platform % Q3 2024 vs. % Q3 YTD 2024 (million contracts) Q3 2023 Q3 2024 Q3 YTD 2023 Q3 YTD 2024 Q3 2023 vs. Q3 YTD 2023 Clearing Market Volumes1 2,372 2,991 26% 7,543 8,618 14% Marex Revenue 96 117 22% 290 342 18% Marex Volumes 210 288 37% 629
Slide 11: Financials
Financials Rob Irvin, CFO
Slide 12: Q3 2024 Highlights
Q3 2024 Highlights 3 months 3 months 9 months 9 months ended 30 ended 30 ended 30 ended 30 September September % September September % ($m) 2024 2023 Change 2 2024 2023 Change 2 • A combination of favourable market conditions, strong underlying growth Revenue 391.2 296.6 32% 1,179.1 919.0 28% Front
Slide 13: Double Digit Growth Across Our Core Service Areas Year-to-Date
Double Digit Growth Across Our Core Service Areas Year-to-Date Hedging and ($m) Clearing Agency and Execution Market Making Corporate Investment Solutions 40% $163 18% $342 $116 31% $290 28% $503 $50 Revenue $122 $384 $95 $35 Q3 YTD 2023 Q3 YTD 2024 Q3 YTD 2023 Q3 YTD 2024 Q3 YTD 2023 Q3 YTD 2024 Q3
Slide 14: Strong Performance in Q3 2024
Strong Performance in Q3 2024 Hedging and ($m) Clearing Agency and Execution Market Making Corporate Investment Solutions 30% 102% $52 $170 13% $17 22% $131 $36 Revenue $32 $12 $117 $96 $26 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Adj. Op. 49% 53% 12% 15% 3% 33
Slide 15: Client Balances Provide Exposure to Net Interest Income
Client Balances Provide Exposure to Net Interest Income A high proportion of client balances have a fixed interest payout, limiting impact from changes in interest rates Illustrative Incremental Profit Average Balances 1 Marex Net Interest Income Due to Rate Sensitivity3 ($bn) ($m) ($m) +1.0% ~$20 $
Slide 16: Prudent Approach to Capital and Liquidity Underpins Investment Grade Ratings
Prudent Approach to Capital and Liquidity Underpins Investment Grade Ratings Total Funding Sources Liquidity Regulatory Capital vs. Capital Requirement ($m) Headroom Total Capital 229% 233% 310% $739m $666m $1,190m Ratio1 ($m) $729 $3.0bn $538 $547 $2.6bn $2.4bn $235 $235 $235 FY 2023 Q3 YTD 2023 Q3
Slide 17: Low-Risk Business Model and Robust Risk Management
Low-Risk Business Model and Robust Risk Management Robust and proactive risk management has limited any negative impacts from recent market volatility • Client driven business; do not take a directional view on prices or indices, limited overnight exposure. • Continue to manage credit risk while sca
Slide 18: Operational Update
Operational Update Ian Lowitt, CEO
Slide 19: Growth Investments to Expand Product Capabilities and Geographic Footprint
Growth Investments to Expand Product Capabilities and Geographic Footprint Middle East Expansion • Acquisition of Aarna Capital, Abu Dhabi-based clearing firm, broadens our international client base • Anticipated day one synergies, including savings from internalised clearing fees and higher net int
Slide 20: Concluding Remarks
Concluding Remarks
Slide 21: Positive Momentum and Executing Against Our Growth Strategy
Positive Momentum and Executing Against Our Growth Strategy Diversified and resilient business delivering strong performance YTD Scalable platform delivering improving margins and returns YTD, 20% Adjusted Operating Profit1 Margin and 25% Return on Equity Executed several growth investments in line
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix
Slide 24: Profit Before Tax to Adjusted Operating Profit Reconciliation
Profit Before Tax to Adjusted Operating Profit Reconciliation 3 months 3 months 9 months 9 months ended 30 ended 30 ended 30 ended 30 Not September September September September Applicable ($m) 2024 2023 2024 2023 Post-IPO Profit after Tax 58.4 32.4 161.3 113.2 • The $10.7m impairment in the first 9
Slide 25: Balance Sheet Broadly Stable in Q3 2024
Balance Sheet Broadly Stable in Q3 2024 Balance sheet consists of high-quality liquid assets which underpin client activity • Cash and Liquid Assets increased during 2024 on account of business growth and ($m) 30 Sep 2024 31 Dec 20231 % change 2 higher client assets Cash & Liquid Assets 5,829.2 4,46
Slide 26: Adjusted Sharpe Ratio (of Adjusted Operating Profit) Reconciliation
Adjusted Sharpe Ratio (of Adjusted Operating Profit) Reconciliation We define the Adjusted Sharpe ratio as the ratio calculated as the average of monthly Adjusted Operating Profit divided by the standard deviation of monthly Adjusted Operating Profit. The Adjusted Sharpe ratio is used by management
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