Equita Group Spa · MIL:EQUI
Equita Group Spa — 9M 2023 Earnings Presentation
29 slides from Equita Group Spa's earnings presentation, November 2023
Slide 1: Investor Presentation (9M'23 Financial Results)
Investor Presentation (9M’23 Financial Results) November, 2023 1
Slide 2: Agenda
Agenda 1. EQUITA at a Glance 2. Our Unique Business Model 3. Financial Highlights (9M’23 Results) 4. Outlook and What’s Next 5. Appendix
Slide 3: EQUITA at a Glance
EQUITA at a Glance EZEQUITA
Slide 4: Who We Are: The Leading Independent Italian Investment Bank
Who We Are: The Leading Independent Italian Investment Bank One of the most respected go-to partner in Italy for investors, institutions, corporates and entrepreneurs, listed on the Italian Stock Exchange and managed by a partnership of committed professionals EQUITA in a Nutshell Shareholders and G
Slide 5: 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. Over the years, it has been part of commercial banks and financial sponsor, allowing the Group to grow and develop solid institutional relationships Euromobiliare SIM
Slide 6: Our Unique Business Model
Our Unique Business Model EZEQUITA
Slide 7: Our Unique Business Model and What We Bring to the Table
Our Unique Business Model and What We Bring to the Table EQUITA acts as broker, financial advisor and alternative asset management platform. We offer financial advisory in strategic corporate finance transactions, capital raising solutions, access to global financial markets, execution of trading id
Slide 8: Track-Record in Diversification, Growth, Remuneration and Business Transformation
Track-Record in Diversification, Growth, Remuneration and Business Transformation Evolution of Net Revenues (2008-2022) CAGR ’20-’22 CAGR ’12-’22 +13% +12% Last 10 years Higher business Global Markets ’22 vs ‘12 diversification CAGR ’08-’12 Investment Banking (10%) 90 Alt. Asset Management 87 Rev 3.
Slide 9: 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% 1.039 696 555 552 754 596 ECM DCM Debt
Slide 10: 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 11: 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 12: Alternative Asset Management: the Rising Star, where Sky is the Limit
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 1.106 Liquid Strategies 980 1.019 944 921 Debt Equity & Renewables 57 917 39 49 100 279 61 150 200
Slide 13: 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 Sustainability Report 2022 advise investors, corporates, entrepren
Slide 14: Financial Highlights (9M'23 Results)
Financial Highlights (9M’23 Results)
Slide 15: Profitability and Resilience in a Very Difficult Environment for Investment Banks
Profitability and Resilience in a Very Difficult Environment for Investment Banks Key Financial Highlights €59.5m €9.7m 22% 5.8x 196 (-7% YoY) (1) (-26% YoY) (1) (+7% YoY) Net Net Return on Tangible IFR # of Professionals Revenues Profits Equity (ROTE) Ratio (2) (end of period) +11% Net Revenues and
Slide 16: EQUITA Performing Better Than Its Main International Peers
EQUITA Performing Better Than Its Main International Peers 9M Performance Market Cap Net Revenues o/w Global o/w M&A & o/w Capital o/w Asset Net Profits Net Profits (Jan 1 - Sep 30, 2023) (€m) Var % Markets Advisory Markets Management YoY change % Margin % (12%) normalising for the very profibale ma
Slide 17: Very Difficult Market in Small Cap Trading, ECM and M&A
Very Difficult Market in Small Cap Trading, ECM and M&A Market figures in 3Q’23 ▪ Euronext Milan +33% YoY Third Parties Brokered Volumes in Italy (1) ▪ Euronext Growth Milan +12% YoY ▪ Bonds +21% YoY Equity – Euronext Milan Equity – Euronext Growth Milan (EGM) Fixed Income (MOT) (volumes, €bn) (volu
Slide 18: All Divisions Performing Relatively Well to Date
All Divisions Performing Relatively Well to Date Trend in Net Revenues since IPO (€m) Nine Months Results Var 9M YoY 40,8 +9% 37,7 31,5 33,8 ▪ Growth in fixed income, derivatives and 30,5 29,9 CAGR ’17-’22 29,0 certificates, more than offsetting lower 26,7 Markets 22,9 +4% trading volumes on Italian
Slide 19: Disciplined Approach on Costs Confirmed. Strong Balance Sheet to Foster Further Growth
Disciplined Approach on Costs Confirmed despite Significant Investments. Strong Balance Sheet to Foster Further Growth 9M’ 9M’ Var % 9M P&L (€m) 2020 2021 2022 23 22 ‘23 vs ’22 9M 9M (€m) Var % Net Revenues 68.2 90.4 86.9 59.5 64.2 (7%) ’23 ’22 Personnel costs (32.3) (42.7) (42.2) (28.1) (30.0) (7%)
Slide 20: Outlook and What's Next
Outlook and What's Next EZEQUITA
Slide 21: A Lot of Initiatives and Investments Made, in Line With the Business Plan
A Lot of Initiatives and Investments Made, in Line With the Business Plan ▪ Diversification of the product offering in the Global Markets (bonds, certificates, derivatives, US equities…) Global Markets ▪ Expansion of the research coverage, with an increasing number of foreign listed companies and Re
Slide 22: Widespread Institutional Effort to Promote Financial and Capital Markets
Widespread Institutional Effort to Promote Financial and Capital Markets Commitment at Commitment at What’s European Level Italian Level Next? Publication of the “Libro Verde” and Further simplification of consultations with market players, documentation legal experts and associations ▪ Prospectus e
Slide 23: Recent Years Have Been Tough but Things are Expected to Improve in 2024
Recent Years Have Been Tough but Things are Expected to Improve in 2024 Macroeconomic scenario is still uncertain for … but there is widespread expectation the next months … that things will improve for our business ▪ Global environment affected by war, political ▪ Interest rates at normalised level
Slide 24: Proposal of €0.35 Dividend per Share, in Line with the Previous Year
Proposal of €0.35 Dividend per Share, in Line with the Previous Year On the back of the Net Profits recorded in 9M’23 and considering expectations for the rest of the year – which includes the good performance recorded in October and November year-to-date – a dividend proposal of €0.35 per share is
Slide 25: 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 26: Appendix
Appendix EZEQUITA
Slide 27: An Increasing Footprint Outside Italy in M&A and Corporate Finance
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 for Italy of 30 80% Top 20 730+ Countries M&A Advisor in Clairfield International, Cross-bor
Slide 28: Balance Sheet
Balance Sheet Strong balance sheet and capital ratios confirmed (€m) 9M’23 1H’23 1Q’23 FY’22 1H’22 FY’21 FY’20 Cash & Cash equivalents 75.1 74.0 106.3 107.9 125.3 136.1 117.2 Financial assets at fair value with impact on P&L 99.3 95.5 90.4 111.7 79.6 49.2 43.8 Financial assets at amortized cost 122.
Slide 29: www.equita.eu
www.equita.eu =EQUITA