FY'22 RESULTS - INVESTORS PRESENTATION
(16 MARCH 2023)
Equita, the leading independent Investment Bank in Italy
SNAPSHOT ON CONSOLIDATED FINANCIAL RESULTS
Equita closed the 2022 fiscal year with the highest result since IPO in terms of Net Revenues related to business with clients (€83m). Net Profits reached €16m and dividend proposal was set to €0.35 per share
Key Relevant KPIs
+9% | ||||||
€83.0m | +5% | 188 | Professionals | (Var '21-'22) | ||
(Var '21-'22) | at year-end | +7% | ||||
Client-related | (CAGR '20-'22) | |||||
+11% | ||||||
Net Revenues | (CAGR '20-'22) | |||||
29% | Return on | |||||
€86.9m | (Var '21-'22) | Tangible Equity (1) | ||||
(4%) |
Consolidated | |||
+13% | ≈5x | ||
Net Revenues | (CAGR '20-'22) | ||
€16.2m | (Var '21-'22) | ||
(25%) | €0.35 | ||
Net Profits (3) | (CAGR '20-'22) | ||
Consolidated | +15% |
IFR
Ratio (2)
Unchanged | ||
Dividend | (Var '21-'22) | |
per share | +75% | |
(Var '20-'22) | ||
(1) ROTE = Last 12-months Net Profits / Average Tangible Equity. Average Tangible Equity calculated as average of beginning of the year and current period Tangible Equity (excluding Net Profits of the | IR EQUITA - FY'22 RESULTS | 2 |
period). (3) IFR Ratio as of 31 December 2022 is higher than minimum regulatory requirement by 5 times. (3) Excluding the impacts of the cash-settlement of the incentive plan Equita Group 2020-2022 |
Equita, the leading independent Investment Bank in Italy
RESILIENT PERFORMANCE COMPARED TO INTERNATIONAL PEERS
Diversification has allowed the Group to record a more resilient performance compared to international peers, also thanks to some profitable investment banking mandates and despite tough capital markets
Country | Market | Revenues | Var % | Net Profits | Var % | Net Profits % |
Cap (€m) | 2022 (LCY, m) | 2022 (LCY, m) | 2022 | |||
Equita
178 | 87 | (4%) | 16 | (25%) | 19% |
Mediobanca | 8.009 | 3.049 | 9% | 936 | 1% | 31% | |||||||
European | ABG Sundal Collier | 249 | 1.704 | (41%) | 270 | (64%) | 16% | ||||||
and UK | |||||||||||||
Numis Corp | 302 | 144 | (33%) | 14 | (76%) | 10% | |||||||
peers | |||||||||||||
Alantra | 446 | 234 | (26%) | 40 | (29%) | 17% | |||||||
239 | 96 | (17%) | 25 | (45%) | 26% | ||||||||
Evli Pankki | |||||||||||||
Mean | 1.849 | (22%) | (43%) | 20% | |||||||||
Median | 249 | (26%) | (45%) | 17% | |||||||||
99.993 | 47.365 | 5% | 11.219 | (47%) | 24% | ||||||||
Goldman Sachs | |||||||||||||
124.251 | 53.668 | 8% | 11.355 | (24%) | 21% | ||||||||
Morgan Stanley | |||||||||||||
3.831 | 1.835 | (20%) | 295 | (33%) | 16% | ||||||||
Houlihan Lokey | |||||||||||||
Global / US | Lazard | 2.210 | 2.850 | (10%) | 359 | (38%) | 13% | ||||||
peers | 3.432 | 2.761 | (16%) | 481 | (43%) | 17% | |||||||
Evercore | |||||||||||||
2.076 | 985 | (37%) | 150 | (63%) | 15% | ||||||||
Moelis & Co | |||||||||||||
683 | 632 | (21%) | 81 | (50%) | 13% | ||||||||
Perella Weinberg | |||||||||||||
5.976 | 5.966 | (35%) | 777 | (53%) | 13% | ||||||||
Jefferies | |||||||||||||
Mean | 29.432 | (16%) | (44%) | 17% | |||||||||
Median | 3.631 | (18%) | (45%) | 16% | |||||||||
(1) Market Cap as of March 10th, 2023. LCY = Local Currency. | IR EQUITA - FY'22 RESULTS | 3 |
Equita, the leading independent Investment Bank in Italy
KEY INITIATIVES COMPLETED IN 2022: A VERY BUSY YEAR
2022 was a very busy year in terms of initiatives, both from a strategic and financial standpoint, as well as from a sustainability point of view
Strengthening of the business
-
Leadership confirmed as best independent broker in Italy, with top ranks reached in
Institutional Investor's survey in Mid & Small Caps research and Trading & Execution
(#2 in Sales & Trading and Corporate Access) - Partnership with ADACTA, network of more than 130 professionals in the North-East of Italy, to develop new investment banking business and contacts
- Senior hirings completed to strengthen some verticals (consumer, industrial, FIG, structured finance)
- Fundraising of Equita Private Debt Fund II completed successfully, with total commitments above target (€237m vs €200m target) and capital deployed to c. 70% with 8 investments completed to date
- First two investments of Equita Smart Capital ELTIF, the private equity fund managed by and expected to raise new commitments in 2023
Optimisation of shareholders' base
-
Sale of a minority stake of Equita (c. 12%) to families, entrepreneurs and institutions, to well-balance the
"ecosystem" of shareholders, preserve independence, foster business opportunities and favor market visibility
Further alignment of interests
- Announcement of a new three-yearbusiness plan to 2024, with financial and sustainability linked-targets
- New incentive plan addressed to top management, linked to value creation for shareholders (Total Shareholders Return and individual targets linked to the business plan)
- New shareholders' pact among managers, representing 32% of the share capital (44% of votes)(1) and including lock-up commitments
Integration of sustainability
- Launch of a new sustainable finance team to address clients' needs and advise investors, corporates, entrepreneurs and institutions in the delicate transition to sustainability
- Assessment of Group's carbon footprint and achievement of carbon-neutrality in 2022, before 2024 target
- Establishment of Fondazione Equita, a no-profit organization with focus on young students, financial education, art and culture, local communities and environment.
(1) As of March 16th, 2023. | IR EQUITA - FY'22 RESULTS | 4 |
Equita, the leading independent Investment Bank in Italy
GROWTH IN BUSINESS WITH CLIENTS, IN ALL AREAS
Division | Net Revenues (€m, change % and breakdown %) | 2022 vs 2021 | |||||
Directional Trading | Client-Driven & MM | +2% Business with clients | ||||
Sales & Trading | ||||||
40,7 | (ex.Directional Trading) | |||||
33,7 | 37,7 | (8%) | ||||
Global | FY'22 | 43% | ||||
(Var '21-'22) | ||||||
Markets | 22,9 | 21,7 | ||||
& Research | 21,8 | +6% | ||||
11,5 | 13,5 | (CAGR '20-'22) | ||||
11,6 | ||||||
6,4 | 2,5 | |||||
0,4 | ||||||
2020 | 2021 | 2022 | ||||
Dir. Trading in FY'21 | ||||||
above historical average |
38,7 | 41,3 | +7% | ||||||||||||||||
28,0 | ||||||||||||||||||
Investment | (Var '21-'22) | FY'22 | ||||||||||||||||
Banking | +21% | 48% | ||||||||||||||||
(CAGR '20-'22) | ||||||||||||||||||
2020 | 2021 | 2022 | ||||||||||||||||
+21% excluding | ||||||||||||||||||
Performance fees | ||||||||||||||||||
Management fees & Portfolio | Performance fees | (28%) | 9% | |||||||||||||||
Alternative | 11,0 | FY'22 | ||||||||||||||||
7,9 | (Var '21-'22) | |||||||||||||||||
Asset | 6,5 | |||||||||||||||||
4,5 | ||||||||||||||||||
+10% | ||||||||||||||||||
Management | ||||||||||||||||||
1,8 | 6,5 | 7,9 | (CAGR '20-'22) | |||||||||||||||
4,7 | ||||||||||||||||||
2020 | 2021 | 2022 |
- Business with clients slightly increased
(+2% vs FY'21, €35.2m vs €34.4m), recording the best FY result since IPO, despite the low levels of activities of clients globally in financial markets - Directional trading profitable (€2.5m in FY'22, -60%).The decrease in revenues is affected by the comparison with the above- average result recorded in 2021 (€6.4m)
- Revenues up 7% to €41.3m, thanks to the solid performance of M&A Advisory - with Equita K Finance contributing materially to growth - more than offsetting the lack of capital markets' transactions in 2022
- Teams involved in high-profile mandates despite the challenging political and macroeconomic environment
-
Revenues (ex. Perf. fees) up 21% in 2022, thanks to the increase in management fees (€6.5m in 2022 vs €6.0m in 2021) from new illiquid products and the positive contribution of the Investment Portfolio
(€1.3m in 2022 vs €0.5m in 2021) - Total Revenues (-28%) affected by the comparison with 2021 which included €4.5m perf. fees
- AuM to €0.9bn (-17% vs FY21), with an increasing mix toward illiquid assets with higher margins and proprietary teams and products
(1) Sales & Trading and Client-Driven Trading & Market Making, excluding Directional Trading) | IR EQUITA - FY'22 RESULTS | 5 |
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Equita Group S.p.A. published this content on 16 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 March 2023 17:04:05 UTC.