Slide 1: Prospering Together – JTC Interim Results 2024
Prospering Together J T C I N T E R I M R E S U L T S 2 0 2 4
Slide 2: Agenda
Agenda 01 CEO HIGHLIGHTS FINANCIAL REVIEW 3 CEO HIGHLIGHTS 5 FINANCIAL REVIEW BUSINESS REVIEW 15 BUSINESS REVIEW 17 M& A INSIGHTS 18 SUMMARY & OUTLOOK 19 Q& A 20 APPENDICES SUMMARY & OUTLOOK APPENDICES J T C I N T E R I M R E S U L T S 2 0 2 4
Slide 3: Our CEO
CEO 02 Our CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW “We have made a strong start to “Our commitment to ownership for the Cosmos Era, with record new all employees remains our defining business wins, organic growth characteristic and while it did not fall directly within the period, above our
Slide 4: CEO Highlights
CEO Highlights 03 CEO HIGHLIGHTS GROUP HIGHLIGHTS “Strong organic growth and strategically important M&A.” £50m FINANCIAL REVIEW GALAXY ERA AWARD S T RO N G S TA RT TO T H E COS M OS E R A ACCE LE R ATE D – Net organic revenue growth of 12.5% – Revenue +21.1% – Underlying EBITDA +22.3% – Underlying
Slide 5: CEO Financial Highlights
CEO Financial Highlights 04 CEO HIGHLIGHTS FINANCIAL REVIEW R E V EN UE UN D ER LY I N G EB IT DA UNDERLYING EBITDA MARGIN N E T O RG A N I C G ROW T H £147.1m £49.1m 33.4% 12.5% BUSINESS REVIEW +21.1% +22 . 3% +0 . 3 PP - 8 . 5 PP £121. 5M H1 2023 £4 0 . 2M H1 2023 33 .1% H1 2023 21. 0% H1 2023 N E
Slide 6: Financial Review
05 CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES Financial 2 0 2 4 Review R E S U L T S I N T E R I M J T C
Slide 7: Our CFO
Our 06 CFO CEO HIGHLIGHTS FINANCIAL REVIEW “Continuing to deliver on guidance.” BUSINESS REVIEW MARTIN FOTHERINGHAM, CFO SUMMARY & OUTLOOK APPENDICES J T C I N T E R I M R E S U L T S 2 0 2 4
Slide 8: Financial Highlights
Financial Highlights 07 “E xcellent performance CEO HIGHLIGHTS FOR THE PERIOD ENDED 30 JUNE 2024 across all metrics.” REPORTED U N D E R LY I N G HIGHLIGHTS H1 2024 H1 2024 H1 2023 CHANGE – Revenue increased by 21.1% (constant currency growth of 22.5%): Revenue (£m) 147.1 147.1 121.5 +21.1% • Growth
Slide 9: LTM Revenue Bridge
LTM Revenue Bridge 08 “G rowth accelerated by CEO HIGHLIGHTS L A S T T W ELV E M O N T H S (“ LT M ” ) strategic M&A in the US.” HIGHLIGHTS – LTM revenue growth on a constant currency basis was 25.6% with net organic growth of 12.5% Lost Won – Gross new organic revenue £38.3m FINANCIAL REVIEW £224.7
Slide 10: LTM Net Organic Growth
LTM Net Organic Growth 09 “D elivering on updated CEO HIGHLIGHTS FOR THE PERIOD ENDED 30 JUNE 2024 guidance of +10% PLC ORGANIC GROWTH THREE-YEAR AVERAGE 10%+ GUIDANCE RANGE PRICING GROWTH organic growth.” H1 2020 2020 H1 2021 2021 H1 2022 2022 H1 2023 2023 H1 2024 HIGHLIGHTS 25% Pricing – Net organ
Slide 11: Revenue by Geography
Revenue by Geography 10 “E xceptional growth CEO HIGHLIGHTS in the US of 83.4%.” HIGHLIGHTS REVENUE GROWTH (£M) LTM NET REPORTED A S PER FINANCIAL STATEMENTS ORGANIC GROWTH – All regions grew revenues organically H1 2024 H1 2023 +/- % PLC – US continues to establish itself as a leading growth jurisd
Slide 12: Underlying EBITDA Margin
Underlying EBITDA Margin 11 “H igh growth with consistent CEO HIGHLIGHTS FOR THE PERIOD ENDED 30 JUNE 2024 margin delivery.” HIGHLIGHTS PLC UNDERLYING 33–38% GUIDANCE RANGE 2020 H1 2021 2021 H1 2022 2022 H1 2023 2023 H1 2024 – Underlying EBITDA margin consistent with 2023 and improved from H1 2023 b
Slide 13: Underlying Cash Conversion
Underlying Cash Conversion 12 “C ash conversion ahead CEO HIGHLIGHTS FOR THE PERIOD ENDED 30 JUNE 2024 of full year guidance.” HIGHLIGHTS UNDERLYING CASH CONVERSION % ACQUISITION NORMALISATION FULL-YEAR CASH CONVERSION % 85–90% GUIDANCE RANGE – Underlying cash conversion at 104% in line with histori
Slide 14: Net Debt and Leverage
Net Debt and Leverage 13 “S uccessful CEO HIGHLIGHTS FOR THE PERIOD ENDED 30 JUNE 2024 NET DEBT deleveraging.” HIGHLIGHTS – Underlying net debt increased by £8.6m in the six-month period – Strong cash conversion and effective working FINANCIAL REVIEW capital management resulted in a reduction to net
Slide 15: Return On Invested Capital (ROIC)
Return On Invested Capital (“ROIC”) 14 “S ignificant ROIC over CEO HIGHLIGHTS FOR THE PERIOD ENDED 30 JUNE 2024 the last twelve months.” PLC ROIC HIGHLIGHTS 2021 2022 2023 LTM 30.06.2024 14% – LTM post-tax ROIC of 13.7%, significantly above cost of capital and an improvement on 2023 13.0% – Recent a
Slide 16: Business Review
15 CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES Business 2 0 2 4 Review R E S U L T S I N T E R I M J T C
Slide 17: Business Review
Business Review 16 CEO HIGHLIGHTS GROUP FINANCIAL REVIEW COMMERCIAL OFFICE ICS DIVISION Catalyst for growth and PCS DIVISION operational improvement • Kate Beauchamp welcomed as • An excellent period of growth and out-performance, across both Divisions new Divisional Head of ICS with pleasing delive
Slide 18: M&A Insights
M&A Insights 17 CEO HIGHLIGHTS $12bn+ JTC RECIPE FOR SUCCESS O W N E R - M A N A G E D / B O LT- O N S FINANCIAL REVIEW ADDRESSABLE MARKETS 1. DEAL CR AFT EXEQUTIVE 1 1 PA RT N E R S 2 2 Experience, knowledge and reputation 2019 2024 See opportunities others miss 3 3 c .10 x E B I T DA c .7x E B I T
Slide 19: Summary & Outlook
Summary & Outlook 18 CEO HIGHLIGHTS K E Y T A K E A W A Y S H2 2024+ FINANCIAL REVIEW – A strong first half of 2024, having carried good momentum from 2023 – A strong performance in the early part of – Record new business wins, strong net organic revenue growth H2 across the Group (particularly in t
Slide 20: Q&A Thank you
19 CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES Q& A Thank you 2 0 2 4 R E S U L T S I N T E R I M J T C
Slide 21: Appendices
20 CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES Appendices 2 0 2 4 R E S U L T S I N T E R I M J T C
Slide 22: The Presenters
The Presenters 21 CEO HIGHLIGHTS Nigel Le Quesne Martin Fotheringham joined JTC in 2015 as Group Chief Financial Officer with responsibility for the financial strategy, planning and forecasting for the Group. FINANCIAL REVIEW He also ensures that all financial management information and reporting is
Slide 23: About Us
About Us 22 CEO HIGHLIGHTS FINANCIAL REVIEW GLOBAL C.410 36 YEARS FTSE BILLION REVENUE USD PROFIT GROWTH 2 5 0 BUSINESS REVIEW P L AT F O R M CLIENT 14,000+ CLIENTS SERVICE AWARD SUMMARY & OUTLOOK WINNING EXCELLENCE C . 2,300 PEOPLE EVERY EMPLOYEE AN OWNER 100+ COUNTRIES APPENDICES J T C I N T E R I
Slide 24: Leading Together
Leading Together 23 CEO HIGHLIGHTS SENIOR MANAGEMENT TEAM Nigel Le Quesne FINANCIAL REVIEW CHIEF EXECUTIVE OFFICER (PLC) Iain Johns Kate Beauchamp BUSINESS REVIEW GROUP HEAD OF GROUP HEAD OF PRIVATE INSTITUTIONAL CLIENT SERVICES CLIENT SERVICES Martin Fotheringham SUMMARY & OUTLOOK GROUP CHIEF FINAN
Slide 25: JTC Overview
JTC Overview 24 CEO HIGHLIGHTS FINANCIAL REVIEW INSTITUTIONAL PRIVATE CLIENT CLIENT SERVICES SERVICES (PCS) DIVISION (ICS) DIVISION Provides trust, corporate and banking services for Provides fund, corporate and banking services global wealth management firms, family and to institutional clients, pr
Slide 26: The JTC Investment Case
The JTC Investment Case 25 CEO HIGHLIGHTS 130+ years EXPERIENCE OF SENIOR TEAM 14.4% 26.0% NET ORGANIC FINANCIAL REVIEW GROW TH* R E V E N U E C AG R L AST 10 YRS Experienced and entrepreneurial management team 15.2% INORGANIC 3 6 Y E A R S O F G R O W T H Demand created by long-term market trends D
Slide 27: Financial Performance
Financial Performance 26 CEO HIGHLIGHTS LO N G HIS TO RY O F GROW T H AND PRO FITAB ILIT Y AT HIGH MARG INS 36 YEARS Revenue Underlying EBITDA EBITDA % FINANCIAL REVIEW 350 50% 45% 300 40% 250 35% £MILLIONS 30% BUSINESS REVIEW 200 25% 150 20% 100 15% 10% 50 5% SUMMARY & OUTLOOK 0 0% 2007 2008 2009 2
Slide 28: Global Reach
Global Reach 27 CEO HIGHLIGHTS Fareham London (2x) Edinburgh St. Louis Netherlands IoM FINANCIAL REVIEW c.2,300 Ireland (2x) Guernsey PEOPLE BUSINESS REVIEW Boston Jersey South Dakota (2x) New York Austria San Jose Delaware Switzerland (2x) 34 Austin, Texas Miami Hong Kong Luxembourg The Bahamas BVI
Slide 29: Blue-chip Global Client Base
Blue-chip Global Client Base 28 CEO HIGHLIGHTS FINANCIAL REVIEW 20% BUSINESS REVIEW O F F TS E 10 0 CO M PA N I E S 8 of the 10 SUMMARY & OUTLOOK L A RG E S T G LO BA L I N V E S T M EN T BA N K S c. 20 clients APPENDICES W H O FE AT U R E W I T H I N T H E FO RT U N E 5 0 0 J T C I N T E R I M R E
Slide 30: Competitor Landscape
Competitor Landscape 29 CEO HIGHLIGHTS THE MARKET CAN BE SEGMENTED THROUGH END-MARKET SERVICES, GEOGRAPHICAL COVERAGE AND SIZE CITCO TMF CUSTODY FINANCIAL REVIEW GLOBAL CSC BANKS IQ-EQ BANKS/ APEX WEALTH MANAGERS SS&C ALTS OCORIAN VISTRA INTERNATIONAL ALTER BUSINESS REVIEW DOMUS GLAS TRIDENT OPUS FS
Slide 31: Macro Market Trends – Institutional Client Services
Macro Market Trends 30 CEO HIGHLIGHTS INSTITUTIONAL CLIENT SERVICES 2020 –2025F EST. CAGRS Global Fund Administration Market Size for Closed Ended Funds, $12bn (2013–2025f) +11% +7% +8% +10% FINANCIAL REVIEW US EU RoW Overall REGUL ATORY COMPLEXIT Y OUTSOURCING Americas Europe RoW Ongoing growth in
Slide 32: Macro Market Trends – Private Client Services
Macro Market Trends 31 CEO HIGHLIGHTS PRIVATE CLIENT SERVICES Increasing number of global UHNWI 2022 to 2023 (’000) Structural growth drivers THE ONGOING GROW TH IN GLOBAL WE ALTH CONTINUES WE ALTH CRE ATION TO FUEL DEMAND FOR PRIVATE CLIENT SERVICES In 2023 the number of UHNWIs globally rose by FIN
Slide 33: Our Sustainability Journey
Our Sustainability Journey 32 CEO HIGHLIGHTS PRESENT NEXT 12–18 MONTHS BEYOND FINANCIAL REVIEW Climate & Transition Risk Established energy Net Zero by committing to Expand to include Scope 3 Carbon Emissions efficiency, waste and the Science Based Targets as we work to achieve Energy Efficiency car
Slide 34: Technology Enabled
Technology Enabled 33 CEO HIGHLIGHTS We are a people business that is increasingly enhanced and enabled by technology. We use technology across the Group in three ways. Firstly, to create new and enhanced service offerings for our clients; secondly, to generate efficiencies by improving the speed, a
Slide 35: CFO Appendix
34 CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES CFO Appendix 2 0 2 4 R E S U L T S I N T E R I M J T C
Slide 36: Balance Sheet
Balance Sheet 35 “Healthy balance sheet CEO HIGHLIGHTS FOR THE PERIOD ENDED 30 JUNE 2024 maintained.” HIGHLIGHTS 30.06.2024 31.12 . 2 0 2 3 +/(-) Non-current assets £M £M £M – Goodwill comprises 57% (2023: 58%) of our Property, plant and equipment 59.0 49.7 9.3 total assets: Goodwill 524.8 523.0 1.8
Slide 37: Cash Flow
Cash Flow 36 “R eliably cash CEO HIGHLIGHTS FOR THE PERIOD ENDED 30 JUNE 2024 generative.” HIGHLIGHTS H1 2024 H1 2023 £M £M – Underlying cash generated of £51.0m Cash generated from operations 49.3 43.6 (H1 2023: £45.2m) Income taxes paid (3.4) (2.1) – Underlying cash conversion of 104% FINANCIAL RE
Slide 38: Cash Conversion & Leverage Reconciliation
Cash Conversion & Leverage Reconciliation 37 “S light deleveraging CEO HIGHLIGHTS FOR THE PERIOD ENDED 30 JUNE 2024 in the period.” HIGHLIGHTS Cash conversion Underlying cash generated (£m) 2 02 0 H1 2 021 2 021 H1 2 022 2 022 H1 2 02 3 2 02 3 H1 2 0 24 – Successful deleveraging driven by strong cas
Slide 39: PCS Division
PCS Division 38 “I mpressive margin CEO HIGHLIGHTS improvement.” HIGHLIGHTS Revenue and Underlying EBITDA Underlying EBITDA Margin (%) – Net revenue growth of 46.1% REVENUE UNDERLYING EBITDA UNDERLYING EBITDA MARGIN % – LTM net organic growth of 13.9% driven by: FINANCIAL REVIEW • Strong growth in C
Slide 40: ICS Division
ICS Division 39 “M argin ref lective CEO HIGHLIGHTS of investment in growth initiatives.” Revenue and Underlying EBITDA Underlying EBITDA Margin (%) HIGHLIGHTS REVENUE UNDERLYING EBITDA UNDERLYING EBITDA MARGIN % – Net revenue growth of 8.5% FINANCIAL REVIEW £87.5M 31.6% – LTM net organic growth of
Slide 41: Client Attrition and Retention
Client Attrition and Retention 40 “C ontinued reduction CEO HIGHLIGHTS in attrition rates.” HIGHLIGHTS PLC Client Attrition Retention of Non-End of Life Revenue – Attrition lower due to decrease in clients reaching natural end of life and driven by: PLC END OF LIFE NON-END OF LIFE RETENTION OF NON-E
Slide 42: Important Notice
Important Notice 41 CEO HIGHLIGHTS This presentation should be read in conjunction with the RNS announcement published by JTC PLC (“JTC” or “the Company”) on 17 September 2024. FINANCIAL REVIEW The information, statements and opinions set out in this presentation and subsequent discussion do not con
Slide 43: jtcgroup.com
J T C I N T E R I M R E S U L T S 2 0 2 4 J TC G R O U P. C O M