Slide 1: Accelerating Together: JTC Full Year Results 2023
AC C E L E R AT I N G TO G E T H E R JTC FU L L Y E A R R E S U LTS 2 023
Slide 2: Agenda
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES AG E N DA 3 C E O H I G H L I G H T S 5 F I N A N C I A L H I G H L I G H T S 1 6 B U S I N E S S R E V I E W 2 0 S U M M A R Y & O U T L O O K 2 1 Q & A 2 2 A P P E N D I C E S 1 JTC FU L L Y E A R R E SU LTS 2023
Slide 3: Chief Executive Officer's Review
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES CHIEF E XECUTIVE OFFICER’S REVIEW “2023 was another outstanding year for the Group. Record organic growth and disciplined inorganic growth mean that we have delivered our Galaxy era goal of doubling the business in just thr
Slide 4: CEO Highlights
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES CEO HIGHLIGHTS 36 YEARS OF GROWTH GROUP HIGHLIGHTS “Outstanding organic growth and strategically important M&A.” – Net organic revenue growth 19.9% (+7.9pp) – Group Commercial Office success – Record annualised wins of £30.
Slide 5: CEO Financial Highlights
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES CEO FINANCIAL HIGHLIGHTS UN D ER LY I N G UN D ER LY I N G N E T O RGA N I C R E V EN UE EB IT DA EB IT DA MA RG I N G ROW T H £257.4 M £85. 9 M 33.4% 19. 9% +28 .7% +3 0.1% +0.4 PP +7. 9 PP £20 0 . 0 M 2022 £6 6 . 0 M 2022
Slide 6: Financial Review
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES FINANCIAL REVIEW 5 JTC FU L L Y E A R R E SU LTS 2023
Slide 7: Exceptional financial performance with strong returns on capital
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES “E xceptional financial performance with strong returns on capital.” MARTIN FOTHERINGHAM, CFO 6 JTC FU L L Y E A R R E SU LTS 2023
Slide 8: Financial Highlights
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES FINANCIAL HIGHLIGHTS F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “I mprovements in all key metrics.” REPORTED U N D E R LY I N G 2023 2023 2022 CHANGE HIGHLIGHTS Revenue (£m) 257.4 257.4 200.0 +28.7% – Revenue
Slide 9: Revenue Bridge
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES REVENUE BRIDGE F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “I ncreased revenue from existing clients.” Lost Won £200.0M £0.8M £2.7M £6.6M £36.3M £13.3M £17.9M £257.4M HIGHLIGHTS – Revenue growth on a constant
Slide 10: Net Organic Growth
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES NET ORGANIC GROWTH F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “R ecord organic growth materially higher than PLC NET ORGANIC GROWTH ROLLING THREE YEAR AVERAGE 8% – 10% GUIDANCE RANGE PRICING GROWTH guidance l
Slide 11: Revenue by Geography
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES REVENUE BY GEOGRAPHY F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “D emonstrating strategic growth in the US.” REVENUE GROWTH (£M) 2023 NET REPORTED A S PER FINANCIAL STATEMENTS ORGANIC GROWTH HIGHLIGHTS 2023 2
Slide 12: Underlying EBITDA Margin
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES U N D E R LY I N G E B I T DA M A R G I N F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “M argin improvement alongside record growth.” PLC UNDERLYING EBITDA % 33 – 38% GUIDANCE RANGE 2020 2021 2022 2023 HIGHLIGH
Slide 13: Underlying Cash Conversion
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES U N D E R LY I N G C A S H C O N V E R S I O N F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “E xceptional underlying cash conversion.” 85 – 90% GUIDANCE RANGE UNDERLYING CASH CONVERSION % ACQUISITION NORMALISAT
Slide 14: Net Debt & Leverage
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES NET DEBT & LEVERAGE F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “S uccessful deleveraging NET DEBT despite M&A activity.” (£6.5M) (£7.5M) HIGHLIGHTS (£14.0M) (£7.3M) – Underlying net debt increased by £18.5m i
Slide 15: Capital Allocation Strategy
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES C A P I TA L A L LO C AT I O N S T R AT EGY “£477.4m of cash raised during the C APITAL ALLOC AT I O N DU RI N G GAL A X Y E R A (2 021-2 023) last three years.” Cash raised through period and choice of capital allocation H
Slide 16: Return on Invested Capital (ROIC)
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES R E T U R N O N I N V E S T E D C A P I TA L (RO I C) F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “Increased longevity demonstrating merits LIFETIME VALUE OF CLIENTS LIFETIME VALUE OF CLIENT RELATIONSHIPS AVER
Slide 17: Business Review
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES BUSINESS REVIEW 16 JTC FU L L Y E A R R E SU LTS 2023
Slide 18: Business Review: Group
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES BUSINESS REVIEW GROUP ONGOING MACRO ICS DIVISION PCS DIVISION CHALLENGES • Recognised top-tier market participant GROUP • Stand out market leader in the • Improved talent, operational capability and COMMERCIAL global trust
Slide 19: Delivering Our Business Plan Eras
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES DELIVERING OUR BUSINESS PLAN ERAS $12BN+ M A R K E T S IZE ODYSSEY GALAXY COSMOS 2018 – 2020 2021 – 2023 2024 – 2027E K E Y M A R K E T D R IV ER S REVENUE DOUBLE AGAIN R EG U L AT I O N & O U T S O U RC I N G £ 2 5 7. 4 M
Slide 20: Our US Story
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES O U R U S S TO RY KEY: ICS PCS THE US OPPORTUNITY – Largest and most GALAXY sophisticated financial 2021 – 2023 services market SOUTH DAKOTA – Most UHNWI & families AUSTIN – Funds market only ODYSSEY BOSTON DELAWARE c. 40%
Slide 21: Summary & Outlook
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES SUMMARY & OUTLOOK K E Y T A K E A W A Y S A positive start to the year – Galaxy era goal of doubling from FY20 with good momentum position achieved two years early Expect strong net organic growth trend to – Outstanding org
Slide 22: Thank You Q&A
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES T H A N K YO U Q& A 21 JTC FU L L Y E A R R E SU LTS 2023
Slide 23: Appendices
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES APPENDICES 22 JTC FU L L Y E A R R E SU LTS 2023
Slide 24: The Presenters
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES Nigel Le Quesne has been the key figure in the development of the JTC Group over the last 35 years. As Chief Executive Officer, Nigel provides strategic leadership and N I G EL L E Q UES N E management for all areas of JTC’
Slide 25: About Us
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES ABOUT US GLOBAL C.335 36 YEARS FTSE BILLION REVENUE USD PROFIT GROWTH 2 5 0 P L AT F O R M CLIENT 12,000+ CLIENTS SERVICE AWARD WINNING EXCELLENCE C . 1,800 PEOPLE EVERY EMPLOYEE AN OWNER 100+ COUNTRIES 24 JTC FU L L Y E A
Slide 26: Leading Together
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES LEADING TOGETHER S E N I O R M A N A G E M E N T T E A M M a r t i n Fo t h e r i n g h a m We n d y H o l l ey GROUP CHIEF FINANCIAL OFFICER (PLC) CHIEF OPERATING OFFICER & CHIEF SUSTAINABILITY OFFICER (PLC) R i c h a rd I
Slide 27: JTC Overview
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES JTC OVERVIEW INSTITUTIONAL CLIENT SERVICES (ICS) DIVISION PRIVATE CLIENT SERVICES (PCS) DIVISION Provides fund, corporate and banking services Provides trust, corporate and banking services to institutional clients, primari
Slide 28: The JTC Investment Case
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES THE JTC INVESTMENT CASE We believe that JTC represents 6 an exceptional long-term growth investment prospect. Our 35+ year track 130+ YEARS record of consistent revenue and profit Experience of senior team 13.8% growth, inc
Slide 29: Global Reach
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES GLOBAL REACH PCS ONLY ICS ONLY CROSS DIVISIONAL JTC KENSINGTON Fareham London (2x) Edinburgh St. Louis Netherlands IoM C. 1,800 Ireland (2x) PEOPLE Guernsey Boston Jersey South Dakota (2x) New York Austria San Jose Delaware
Slide 30: Blue-chip global client base
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES BLUE-CHIP GLOBAL CLIENT BASE 8 OF THE 10 L A RG ES T G LO BA L I N V E S T M ENT BA N K S 20% O F F TS E 10 0 CO M PA N I ES C. 20 CLIENTS W H O FE AT UR E W IT H I N T H E FO RT UN E 5 0 0 29 JTC FU L L Y E A R R E SU LTS
Slide 31: Competitor Landscape
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES COMPETITOR LANDSCAPE T H E M A R K E T C A N B E S E G M E N T E D T H R O U G H E N D - M A R K E T S E R V I C E S , G E O G R A P H I C A L C O V E R A G E A N D S I Z E CITCO TMF CUSTODY CSC BANKS GLOBAL IQ-EQ BANKS/ AP
Slide 32: Macro Market Trends: Institutional Client Services
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES MACRO MARKET TRENDS I N S T I T U T I O N A L C L I E N T S E R V I C E S 2 0 2 0 – 2 0 2 5 F E S T . C A G R S Global Fund Administration Market Size +11% +7% +8% +10% For Closed Ended Funds, $bn (2013-2025f) US EU RoW Ove
Slide 33: Macro Market Trends: Private Client Services
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES MACRO MARKET TRENDS P R I V A T E C L I E N T S E R V I C E S STRUCTURAL GROWTH DRIVERS – Wealth creation: The ultra-wealthy are I N C R E A S I N G N U M B E R O F G L O B A L U H N W I , 2 0 2 0 T O 2 0 2 1 ( ‘ 0 0 0 ) ge
Slide 34: Our Sustainability Journey
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES O U R S US TA I N A B I L I T Y J O U R N E Y PRESENT NEXT 12–18 MONTHS BEYOND Climate & Transition Risk Established energy Net Zero by committing to Expand to include Scope 3 Carbon Emissions efficiency, waste and the Scie
Slide 35: Technology Enabled
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES TECHNOLOGY ENABLED We are a people business that is increasingly enhanced and enabled by technology. We apply technological capabilities across the Group in two ways. Firstly, to create new and enhanced service offerings fo
Slide 36: CFO Appendix
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES CFO APPENDIX 35 JTC FU L L Y E A R R E SU LTS 2023
Slide 37: Group Balance Sheet
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES GROUP BALANCE SHEET F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “c 300% increase in total assets Non-current assets 31 .12 . 2 0 2 3 £M 31.12 . 2 0 2 2 £M +/(-) since IPO.” Property, plant and equipment 49.7 4
Slide 38: Group Cash Flow
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES GROUP CASH FLOW F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “Consistently generating positive 2023 £M 2022 £M cash flows.” Cash generated from operations 84.7 55.4 Income taxes paid (3.4) (2.1) Net cash from o
Slide 39: Cash Conversion & Leverage Reconciliation
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES C A S H C O N V E R S I O N & L E V E R AG E R E C O N C I L I AT I O N F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “Deleveraging as a CASH CONVERSION result of high cash Underlying cash generated (£m) 2020 20
Slide 40: Effective Tax Rate
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES E FFEC T I V E TA X R AT E F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “Tax rate stability as we continue to grow 2020 2021 2022 2023 internationally.” 12% HIGHLIGHTS 9.7% 9.7% – Effective tax rate has stabili
Slide 41: Post-IPO Story
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES POST- IPO STORY F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “Consistently NET ORGANIC REVENUE GROWTH % NET ORGANIC GROWTH U N D E R LY I N G E B I T DA % UNDERLYING EBITDA MARGIN 33% – 38% GUIDANCE RANGE deliv
Slide 42: PCS Division
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES PCS DIVISION F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “Record net REVENUE AND UNDERLYING EBITDA UNDERLYING EBITDA MARGIN (%) organic growth.” REVENUE UNDERLYING EBITDA UNDERLYING EBITDA MARGIN % £94.1M 36.5
Slide 43: ICS Division
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES ICS DIVISION F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “Continued margin REVENUE AND UNDERLYING EBITDA UNDERLYING EBITDA MARGIN (%) improvement.” REVENUE UNDERLYING EBITDA UNDERLYING EBITDA MARGIN % £163.3M
Slide 44: Client Attrition and Retention
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES C L I E NT AT T R IT I O N A N D R E T E NT I O N F O R T H E Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 “I ncreased client length driving lower attrition.” PLC CLI ENT AT TRITION RETENTION OF NON-END OF LIFE REVENUE PLC
Slide 45: Important Notice
CEO HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW SUMMARY & OUTLOOK APPENDICES I M P O RTA N T N OT I C E This presentation should be read in conjunction with the RNS announcement published by JTC PLC (“JTC” or “the Company”) on 9 April 2024. The information, statements and opinions set out in this pr
Slide 46: JTC Full Year Results 2023
JTC FULL YE AR RESULTS 2023 J TC G R O U P. C O M