Record PlcLSE: REC

Interim Results Presentation Six Months Ended September 2024

· MarketScreener

15 November 2024

Recordfg.com

Record Financial Group

H1 FY25 Results Presentation

15 November 2024

Recordfg.com

Agenda

Highlights

Strategic Update

Financial Performance

Summary & Outlook

Highlights

AUM

4%

$106.0bn

vs 31/3/24

Revenue

(2%)

£21.1m

vs H1FY24

Operating margin

(178bps)

26.8%

vs H1FY24

EPS

4%

2.58p

vs H1 FY24

Interim dividend

per share

-%

2.15p

  • AUM up 3.7% since year end; up 25% y-o-y
  • Growth in management fees from core currency management products
  • Launch of Infrastructure Equity Fund marks a new chapter for Record and a foundation for future growth
  • Key hires in RAM to build on success and accelerate growth
  • Higher EPS to Record shareholders reflecting minority cost share
  • Interim dividend maintained at 2.15p

AUM ($bn)

87.7

102.1

106.0

65.9

80.1

84.1

83.1

80.8

84.5

H1-21

H2-21

H1-22

H2-22

H1-23

H2-23

H1-24

H2-24

H1-25

4

15 November 2024

Recordfg.com

Agenda

Highlights

Strategic Update

Financial Performance

Summary & Outlook

Focus on our strategic objectives

Organic Growth

  • Overall revenue down 2% with growth offset by the one-off impact of a large client mandate restructure
  • AUM inflows in higher-margin products - Hedging for Asset Managers, FX Alpha, EM debt

Improve Quality of Earnings

  • Business reorganised by product with clearly defined accountabilities
  • Infrastructure Equity Fund will deliver committed long-term revenues

Operational Excellence

  • Under the new IT leadership, implemented roadmap to ensure client technology remains state-of-the-art and internal infrastructure can be scaled to support growth
  • Operational infrastructure to support growth in European asset management business
  • Lease signed on new London headquarters

6

Products

Product categories where we can offer a unique value proposition and where we can be best-in-class

  • AUM up $21.5bn (25%) over the last 12 months across all products
  • Risk management products increasingly attractive in periods of political and economic uncertainty

Currency Management ($103.4bn)

Passive FX

Active FX

Hedging for

Asset

FX Alpha

Hedging

Hedging

Managers

Asset Management ($2.6bn)

Custom Solutions

EM Debt

Infrastructure

Private Credit

Equity

Risk Management

Return-seeking

7

Currency Management

  • Currency Management AUM increased by $25bn since last year, to reach a record $103.4bn. During the period, AUM increased in every Currency Management product
  • Strong pipeline for Hedging for Asset Managers and FX Alpha

Passive FX

Hedging

  • AUM growth driven by FX movements; modest underlying outflows

$68.3bn

3%

vs H2 FY24

Active FX Hedging

  • Weak USD affecting performance

$16.8bn

2%

vs H2 FY24

Hedging for Asset

Managers

  • New mandate wins during the period
  • Strong sales pipeline

$12.3bn 18%

vs H2 FY24

FX Alpha

  • Highly attractive offering continues to deliver for existing client and attract new interest

$6.0bn

33%

vs H2 FY24

8

Asset Management

  • Launch of Infrastructure Equity Fund, an important milestone in building our Asset Management offering
  • Active pipeline of large scale opportunities

EM Debt

  • EMSF launched June 2021
  • Trailblazing approach to EM local debt

$1.1bn

14%

vs H2 FY24

Infrastructure

Equity

  • Respond to demand from Swiss pension fund clients
  • Investor opportunities in

world's megatrends

(eg energy transition; digital transformation)

$1.1bn

NEW

(commitments)

Active pipeline

  • Focussed on our unique capabilities to deliver custom solutions at large scale
  • Includes Private Credit and expansion of GP Stakes

9

Record Asset Management

• Growing demand for credible, long-term

partners with a strong execution track

record

• Comprehensive asset management services:

• effective governance framework

• managing legal structures

Record plc

RAM

management

team

100% 41% 59%

(51% voting rights)

• supporting complex private market

investment strategies

• Bafin regulated, Frankfurt-based subsidiary

• Highly experienced team based in Frankfurt,

Zurich, Zug, and London

• Management shareholding aligns incentives

Record

Currency

Management

Limited

Record Asset

Management

GmbH

10

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