Piper Sandler Companies · NYSE:PIPR
Piper Sandler Companies — Investor Presentation (2021)
29 slides from Piper Sandler Companies's investor presentation, Oct 23, 2021
Slide 1: Investor Presentation
Investor Presentation
Slide 2: Cautionary notice regarding forward-looking statements
Piper Sandler Investor Presentation Cautionary notice regarding forward-looking statements This presentation contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking
Slide 3: Contents
Contents Piper Sandler Investor Presentation I. Our business and value proposition II. Investment rationale III. Appendix
Slide 4: Our business and value proposition
Section I. Our business and value proposition
Slide 5: A leading investment bank
Year Founded: 1895 NYSE: PIPR Headquarters: Minneapolis, MN Employees: 1,500+ Offices: 60+ A leading investment bank $1.6BB REVENUE LTM 2Q 2021 MIX We enable growth and success for our clients through ADJUSTED NET deep sector expertise, candid advice and a differentiated, REVENUES* highly productive
Slide 6: Strategic objectives
Strategic objectives I. Our business and value proposition WE REMAIN FOCUSED ON EXECUTING OUR LONG-TERM STRATEGIC OBJECTIVES Continue executing on our investments and fully realizing the revenue synergies resulting from recent acquisitions by collaborating across business lines to leverage the full
Slide 7: Transforming our business through strategic investments
Transforming our business through strategic investments I. Our business and value proposition DRIVING REVENUE GROWTH, BUILDING A STRONGER AND MORE DURABLE PLATFORM, AND MAXIMIZING SHAREHOLDER VALUE THROUGH FOCUSED INVESTMENTS 2013 2015 Invested in Invested in Advisory 2020 Public Finance Added a lea
Slide 8: Investment banking
Investment banking I. Our business and value proposition SIGNIFICANTLY SCALED, DURABLE PLATFORM WITH DEEP AND BROAD SECTOR EXPERTISE • Multiple market-leading franchises in significant industry sectors provide resiliency across cycles • Five scaled industry teams each with potential to generate $100
Slide 9: Growth trajectory of corporate investment banking platform
Growth trajectory of corporate investment banking platform I. Our business and value proposition ONE OF THE LARGEST AND BROADEST MIDDLE MARKET INVESTMENT BANKS ON THE STREET Corporate Investment Banking Revenues ($ in millions) Growth Drivers $1,400 • Market share gains • Consistently winning larger
Slide 10: Comprehensive suite of products and services
Comprehensive suite of products and services I. Our business and value proposition PROVIDING THE HIGHEST QUALITY ADVICE TO OUR CLIENTS M&A Advisory INVESTMENT BANKING REVENUES BY PRODUCT • Top-ranked middle market M&A advisor • Industry-focused M&A Our diversified mix of products allows us to serve
Slide 11: Market leader in capital raising for healthcare and financial services
Market leader in capital raising for healthcare and financial services I. Our business and value proposition EQUITY FINANCING DEBT CAPITAL RAISING Active equity underwriting calendar driven by Strong activity within community and regional leadership in healthcare bank debt issuance driven by low int
Slide 12: One of the fastest growing investment banks
One of the fastest growing investment banks I. Our business and value proposition SERVING THE FULL RANGE OF MIDDLE-MARKET COMPANIES WITH OUR REPUTATION FOR CLIENT-FIRST APPROACH AND STRAIGHTFORWARD ADVICE Growth in Advisory Services Revenues1 U.S. M&A All Industries2 LTM 2Q 2021 VS. 2013 2016-2Q 202
Slide 13: Equity institutional brokerage
Equity institutional brokerage I. Our business and value proposition CREATING REAL VALUE FOR INSTITUTIONAL INVESTORS SCALED PLATFORM WITH 170+ PROFESSIONALS AND ANNUAL REVENUES OF $150MM+ Combination of top-ranked research, trading, and capital markets capabilities creates a premier client destinati
Slide 14: Global equity sales and trading platform
Global equity sales and trading platform I. Our business and value proposition MEANINGFULLY EXPANDED TRADING PLATFORM Products 2016 2021 High-Touch (Cash) Trading Deep sector expertise combined with trading excellence that minimizes market impact and reduces trading costs Program Trading Qualitative
Slide 15: Public finance
Public finance I. Our business and value proposition LEADING MIDDLE-MARKET TAX-EXEMPT UNDERWRITER SECTOR EXPERTISE Local market relationships and knowledge amplified by the strength of Government substantial scale and expertise • Local Municipalities • Uniquely positioned market leader in a steady b
Slide 16: Longstanding public finance leadership
Longstanding public finance leadership I. Our business and value proposition NATIONAL PLATFORM, REGIONAL EXPERTISE RECORD MARKET SHARE, RANKING AMONG THE NATION’S LEADING UNDERWRITERS Consistently improving a strong franchise • Periods of market instability create industry consolidation opportunitie
Slide 17: Fixed income business
Fixed income business I. Our business and value proposition DIFFERENTIATED FIXED INCOME MODEL PROVIDING COMPREHENSIVE INVESTMENT SOLUTIONS TO CLIENTS Fixed Income Revenues $ in millions Leads with advice in defined client verticals and strategically $234 utilizes capital to facilitate client needs $
Slide 18: Diversified mix of clients and products provides durability across market cycles
Diversified mix of clients and products provides durability across market cycles I. Our business and value proposition ONE OF THE LARGEST MIDDLE-MARKET FIXED INCOME PLATFORMS WITH ANNUAL REVENUE POTENTIAL OF $200MM+ Client Base • Financial institutions Providing holistic approach to balance sheet ma
Slide 19: Investment rationale
Section II. Investment rationale
Slide 20: Investment rationale
Investment rationale II. Investment rationale Diversified firm with market leadership, broad product capabilities and scale across all business lines Track record of profitable growth Advice-driven model with low incremental operating capital needs and the capacity to generate significant cash flows
Slide 21: Diversified firm with broad product capabilities
Diversified firm with broad product capabilities II. Investment rationale Adjusted Net Revenue Mix Investment Banking Revenue Mix 34% $1.2BB LTM 2Q 2021 REVENUES 41% 11% 55% $1.6BB 34% LTM 2Q 2021 Advisory services Corporate financing Municipal financing ADJUSTED NET REVENUES* Institutional Brokerag
Slide 22: Track record of profitable growth
Track record of profitable growth II. Investment rationale Adjusted Net Revenues* Adjusted Earnings Per Diluted Share* $ in millions $1,604 $16.25 $1,235 $10.02 $825 $826 $742 $7.36 $690 $6.68 $599 $5.72 $558 $423 $441 $4.05 $371 $3.09 $3.18 $2.03 $2.24 $0.83 2011 2012 2013 2014 2015 2016 2017 2018
Slide 23: Advice-driven model with low operating capital needs
Advice-driven model with low operating capital needs II. Investment rationale DECREASING OPERATING CAPITAL WHILE GROWING REVENUES AND INVESTING IN THE BUSINESS Adjusted Assets* Inventory Tangible Leverage Ratio* $ in millions $ in millions $1,783 -13% $1,059 3.4 -23% $1,552 2.6 -56% $463 2016 2Q 202
Slide 24: Disciplined cost management driving operating leverage
Disciplined cost management driving operating leverage II. Investment rationale PRUDENTLY MANAGE COSTS TO DRIVE MARGIN ACROSS MARKET CYCLES • Maintain compensation ratio to balance profitability and retention • Continue non-compensation cost reduction initiatives Adjusted Non-Compensation Ratio1 Adj
Slide 25: Multiple levers to generate returns for shareholders
Multiple levers to generate returns for shareholders II. Investment rationale SHARE REPURCHASES Capital returned to shareholders through $565MM repurchases since 2011 Reduction in number of common shares 6% outstanding1 since 2011 $292MM DIVIDENDS LTM 2Q 2021 ADJUSTED NET Capital returned to shareho
Slide 26: Reconciliation of non-GAAP financial measures
Appendix Reconciliation of non-GAAP financial measures
Slide 27: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Selected financial data by year LTM June 30, For the year ended December 31, (Amounts in thousands) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Net revenues: Net revenues – U.S. GAAP basis $1,646,862 $1,238,213 $834,566 $740,953 $823,621 $693,
Slide 28: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Selected financial data by year – continued LTM June 30, For the year ended December 31, (Amounts in thousands) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Income tax expense: Income tax expense – U.S. GAAP basis $ 70,606 $19,192 $24,577 $18,0
Slide 29: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Selected financial data by year – continued LTM June 30, For the year ended December 31, (Amounts in thousands, except per share data) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Net income/(loss) applicable to Piper Sandler Companies' common
Piper Sandler Companies — Investor Presentation (2021) on 6ix