Slide 1: Diversified Resilient Dynamic: 2024 Interim Results
Diversified Resilient Dynamic 2024 Interim Results August 14th, 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 Markets
Marex Plays an Essential Role in Connecting Clients to Commodity and Financial Markets Illustrative Clients Marex 1 Clearing Services Illustrative Exchanges & Clearing Houses 4 2 Hedging and Agency & Investment Execution Solutions 3 Market Making 3
Slide 4: Our Track Record of Delivering Sequential Growth
Our Track Record of Delivering Sequential Growth $230 $159 CAGR: ~34% $122 $80 Adjusted Operating Profit ($m)1 $16 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 Clients2 ~1,100 ~2,000 ~2,700 ~4,100 ~5,000 Staff3 ~570 ~730 ~1,600 ~2,000 ~2,300 Exchanges 10 48 51 58 58 Offices 8 19 29 43 4
Slide 5: Key Messages
MAREX! Key Messages lan Lowitt, CEO
Slide 6: Key Highlights
Key Highlights Strong performance in H1 2024: successful execution of our growth strategy and positive market conditions supported strong performance in all business segments in the first half of the year • While all business segments performed well, standout in the second quarter was Market Making,
Slide 7: Delivering Strong Progress In Our Key Metrics
Delivering Strong Progress In Our Key Metrics Revenue Adjusted Operating Profit1 Adjusted Operating PAT Attr. to Common Equity1 ($m) ($m) ($m) 1,245 230 163 Growth 788 159 116 622 125 90 2023 H1 2023 H1 2024 2023 H1 2023 H1 2024 2023 H1 2023 H1 2024 Adjusted Operating Profit Margin2 Reported ROE Ret
Slide 8: Growth In Market Volumes
Growth In Market Volumes Strong growth in commodity market volumes, particularly metals Exchange Contracts by Asset Class (bn) 12.2 11.6 6.7 10.1 2.3 6.2 2.0 • Metals +29% 1.4 Commodities +22% • Energy +24% 2.1 1.1 • Agriculture +10% Financials +6% 9.6 10.0 5.0 5.3 8.0 2021 2022 2023 H1 2023 H1 2024
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 increased dramatically in 2022 with the forward curve
Slide 10: Market Opportunity in Market Making in Metals
Market Opportunity in Market Making in Metals Disruption in metals market resulting from revised guidance on restrictions on Russian material, caused increased prices, market volumes and client activity on Marex platform in Q2 2024 Aluminum and Copper Prices (rebased to 100) Copper Open Interest (Co
Slide 11: Increasing Client Activity and Share Gains on the Marex Platform
Increasing Client Activity and Share Gains on the Marex Platform (million contracts) H1 2023 H2 2023 H1 2024 % H1 2024 vs. H1 2023 % H1 2024 vs. H2 2023 Clearing Market Volumes1 5,170 5,050 5,627 9% 11% Marex Revenue 193.9 179.7 224.9 16% 25% Marex Volumes 419.0 438.0 533.1 28% 22% Agency and Execut
Slide 12: Consistent Growth in Clients
Consistent Growth in Clients We have added around 900 clients in 2024, primarily driven by our onboarding of new clients, as well as a portion through the acquisition of Cowen Prime Services business Active Clients Clients >$1m Clients $250k - $1m 259 602 ~5,000 228 497 ~4,100 ~2,700 ~2,200 271 95 2
Slide 13: Financials
Financials Rob Irvin, CFO 13
Slide 14: H1 2024 Highlights
H1 2024 Highlights ($m) Q2 2024 Q1 2024 H1 2024 H1 2023 Δ HoH % change2 Revenue 422.1 365.8 787.9 622.4 165.5 27% Front Office Costs (224.8) (210.1) (434.9) (335.2) (99.7) 30% • Strong performance across all four business segments, positive market Control and Support Costs (100.4) (80.6) (181.0) (14
Slide 15: Strong Performance Across Our Core Service Areas
Strong Performance Across Our Core Service Areas Hedging and ($m) Clearing Agency and Execution Market Making Corporate Investment Solutions $111 $86 $225 $333 Revenue $194 $91 $63 $252 $33 $22 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 Adj. Op. 51% 53% 11% 13% 2
Slide 16: Client Balances Provide Exposure to Net Interest Income
Client Balances Provide Exposure to Net Interest Income A high proportion of client balances have a fixed interest payout, limiting impact from changes in interest rates Illustrative Incremental Profit Average Balances1 Marex Net Interest Income Due to Rate Sensitivity3 ($bn) ($m) ($m) $13.6 +1.0% ~
Slide 17: Capital Allocation Principles
Capital Allocation Principles Maintain strong capital position and significant liquidity headroom to underpin our investment grade credit ratings Support organic growth opportunities that expand our product coverage and geographic reach Pay a progressive dividend to our shareholders, initial dividen
Slide 18: Prudent Approach to Capital and Liquidity Underpins Investment Grade Ratings
Prudent Approach to Capital and Liquidity Underpins Investment Grade Ratings Liquidity Regulatory Capital vs. Capital Requirement ($m) Total Funding Sources Headroom Total Capital 229% 278% 276% $739m $821m $1,175m Ratio1 $650 $2.8bn $538 $2.6bn $528 $2.3bn $235 $235 $190 2023 H1 2023 H1 2024 2023 H
Slide 19: Low-Risk Business Model and Robust Risk Management
Low-Risk Business Model and Robust Risk Management Robust and proactive risk management has limited any negative impacts from recent market volatility • Client driven business; do not take a directional view on prices or indices, limited overnight exposure. • Continue to manage credit risk while sca
Slide 20: Operational Update
Operational Update Ian Lowitt, CEO 20
Slide 21: Continue to See Growth Opportunities in EMEA, Particularly Middle East
Continue to See Growth Opportunities in EMEA, Particularly in the Middle East ($m) • Well established franchise in UK and European commodity markets 692 Revenue 463 445 • 2024 YTD performance driven by positive contribution from all four 374 358 segments, with particularly strong results in Energy A
Slide 22: Scalable Americas Platform Built Through M&A and Organic Growth
Scalable Americas Platform Built Through M&A and Organic Growth ($m) • Marex US platform extended through acquisition of RCG in 2019 and Revenue 458 ED&F Man Capital Markets in 2022 281 206 220 141 • Strong growth delivered YTD, reflecting positive performance across all 2021 2022 2023 H1 2023 H1 20
Slide 23: Strong Growth and Margin Expansion Opportunity in APAC
Strong Growth and Margin Expansion Opportunity in the APAC Region ($m) • Asia presence established 13 years ago in Hong Kong and Singapore, initially 95 Revenue focused on the energy and metals markets 62 42 44 27 • Australia business established in 2022 2021 2022 2023 H1 2023 H1 2024 • New Zealand
Slide 24: Concluding Remarks
Concluding Remarks 24
Slide 25: Strong Performance in First Half and Positive Outlook
Strong Performance in First Half and Positive Outlook Diversified and resilient business delivering strong performance Strong performance in H1 2024, $116m Adjusted Operating Profit After Tax Attributable to Common Equity Scalable platform delivering improving margins and returns, 25% reported ROE i
Slide 26: Q&A
Q&A 26
Slide 27: Appendix
Appendix 27
Slide 28: Profit Before Tax to Adjusted Operating Profit Reconciliation
Profit Before Tax to Adjusted Operating Profit Reconciliation Not Applicable ($m) Q2 2024 Q1 2024 H1 2024 H1 2023 Post-IPO Profit after Tax 59.3 43.6 102.9 80.8 Taxation Charges 20.8 15.3 36.1 28.7 • The $10.7m impairment in H1 2023 relates to the write-down of Profit before tax 80.1 58.9 139.0 109.
Slide 29: Balance Sheet Broadly Stable in H1 2024
Balance Sheet Broadly Stable in H1 2024 Balance sheet consists of high-quality liquid assets which underpin client activity • Cash and Liquid Assets increased during 2024 on account of business growth and ($m) 30 Jun 2024 31 Dec 2023 % change higher client assets Cash & Liquid Assets 5,135.2 4,465.9
Slide 30: Adjusted Sharpe Ratio 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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