Investor Presentation • Mar 17, 2022
Investor Presentation
Open in ViewerOpens in native device viewer
17 March 2022
1 Intermonte Galleria de Cristoforis, 7/8 | 20122 Milano | 39-02-77115.1 www.intermonte.it
This document (the "Presentation") has been prepared by Intermonte Partners SIM S.p.A. (the "Company") for information purpose only and, furthermore, it has been drafted without claiming to be exhaustive.
This Presentation may not be reproduced or distributed, in whole or in part, by any person other than the Company.
This Presentation may contain financial information and/or operating data and/or market information regarding business and assets of the Company and its subsidiaries. Certain financial information may not have been audited, reviewed or verified by any independent accounting firm.
THIS PRESENTATION AND ANY RELATED ORAL DISCUSSION DO NOT CONSTITUTE AN OFFER TO THE PUBLIC OR AN INVITATION TO SUBSCRIBE FOR, PURCHASE OR OTHERWISE ACQUIRE ANY FINANCIAL PRODUCTS, AS DEFINED UNDER ARTICLE 1, PARAGRAPH 1, LETTER (T) OF LEGISLATIVE DECREE NO. 58 OF 24 FEBRUARY 1998, AS AMENDED. Therefore, this document is not an advertisement and in no way constitutes a proposal to execute a contract, an offer or invitation to purchase, subscribe or sell for any securities and neither it or any part of it shall form the basis of or be relied upon in connection with any contract or commitment or investments decision whatsoever. Any decision to purchase, subscribe or sell for securities will have to be made independently of this Presentation. Therefore, nothing in this Presentation shall create any binding obligation or liability on the Company and its affiliates and any of their advisors or representatives.
Likewise, this Presentation is not for distribution in, nor does it constitute an offer of securities for sale in the United States of America, Canada, Australia, Japan or any jurisdiction where such distribution is unlawful, (as such term is defined in Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act"). Neither this Presentation nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any US person. Any failure to comply with this restriction may constitute a violation of United States securities laws.
No representation or warranty, express or implied, is or will be given by the Company as to the accuracy, completeness or fairness of any Information provided and, so far as is permitted by law and except in the case of fraud by the party concerned, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for errors, omissions or misstatements, negligent or otherwise, relating thereto. In particular, but without limitation, no representation or warranty, express or implied, is or will be given as to the achievement or reasonableness of, and no reliance may be placed for any purpose on the accuracy or completeness of, any estimates, targets, projections or forecasts and nothing in these materials should be relied upon as a promise or representation as to the future.
The information and opinions contained in this document are provided as at the date hereof and are subject to change without notice. The recipient will be solely responsible for conducting its own assessment of the information set out in the Presentation. Neither the Company and its affiliates, nor any of their advisors or representatives shall be obliged to furnish or to update any information or to notify or to correct any inaccuracies in any information. Neither the Company and its affiliates, nor any of their advisors or representatives shall have any liability to the recipient or to any of its representatives as a result of the use of or reliance upon the information contained in this document.
Certain Information may contain forward-looking statements which involve risks and uncertainties and are subject to change. In some cases, these forward-looking statements can be identified by the use of words such as "believe", "anticipate", "estimate", "target", "potential", "expect", "intend", "predict", "project", "could", "should", "may", "will", "plan", "aim", "seek" and similar expressions. The forecasts and forward-looking statements included in this document are necessarily based upon a number of assumptions and estimates that are inherently subject to significant business, operational, economic and competitive uncertainties and contingencies as well as assumptions with respect to future business decisions that are subject to change. By their nature, forward-looking statements involve known and unknown risks and uncertainties, because they relate to events, and depend on circumstances, that may or may not occur in the future. Furthermore, actual results may differ materially from those contained in any forward-looking statement due to a number of significant risks and future events which are outside of the Company's control and cannot be estimated in advance, such as the future economic environment and the actions of competitors and others involved on the market. These forward-looking statements speak only as at the date of this Presentation. The Company cautions you that forward looking-statements are not guarantees of future performance and that its actual financial position, business strategy, plans and objectives of management for future operations may differ materially from those made in or suggested by the forward-looking statements contained in this Presentation. In addition, even if the Company's financial position, business strategy, plans and objectives of management for future operations are consistent with the forward-looking statements contained in this Presentation, those results or developments may not be indicative of results or developments in future periods. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
By viewing and/or receiving this Presentation, you acknowledge and agree to be bound by the foregoing terms, conditions, limitations and restrictions.
Business Overview
Intermonte is a listed independent investment bank that enjoys a leading position in financial services and brokerage for Italian institutional investors and SMEs
Note: 1. as of FY21; 2. Payout ratio calculated on adjusted consolidated net profit; 3. CET1= Common Equity Tier 1; T1 = Tier1 = Total Tier 1 Capital; OF = Total Capital = Total Own Funds; 4. Includes the two shareholders with stakes above 5%: Alessandro Valeri: 7.1% and Gian Luca Bolengo: 7.1% ; 5. from IPO;
Market Overview & Strategy
Global Markets
Note: 1. Borsa Italiana; 2. Assosim data as at 31° December 2021; 3. Borsa Italiana; 4. KPMG report on the M&A market in Italy; 5. Eurostat; 6. «Organismo di vigilanza e tenuta dell'albo unico dei Consulenti Finanziari» (or "OCF" )
Notes: 1. Intermonte processing of Assosim data for FY2021: Pure Online Retail Brokers: Directa SIM and Finecobank; Commercial retail banks: Banca Akros, Banca Sella Holding, BPER, Credem, Iccrea Banca, Intesa Sanpaolo, MPS Capital Services, Banca Cambiano, Unicredit Bank AG, and IwBank; Institutional Brokers / Private Banks: Banca Finnat Euramerica, Banca Generali, Banca Intermobiliare, CFO SIM, Citigroup, Equita SIM, Ersel SIM, Finsud SIM, Intermonte SIM, Invest Banca, Mediobanca, Merrill Lynch, Morgan Stanley, Société Générale, and UBS Ltd; 2. Intermonte processing of Borsa Italiana and FactSet data; 3. Intermonte processing of Borsa Italiana data as at December 2021, the analysis considers IPOs on EXM and EGM since 2010, with equity offerings between Eu20mn and Eu200mn featuring Global Coordinator and/or Bookrunner roles (excluding SPAC and Special Purpose Vehicles); 4. Processing of Borsa Italiana data as at December 2021, analysis considers IPOs on EGM Italia with an offer exceeding Eu20mn, excluding SPAC and Special Purpose Vehicles; 5. Intermonte processing of Borsa Italiana data as at January 2021, analysis considers listings on ATM, MIV, EXM and/or EXM STAR segment; 6. Intermonte processing of Borsa Italiana data as at December 2021; 7. Assosim data as at December 2021
Exploit growth opportunities both in bolt-on areas (S&T and GM) and in Investment Banking/Digital Division & Advisory
Maintain an efficient balance sheet and balanced risk profile
High dividend payout ratio, consistent with track record, and active shares' buyback policy
Key Financial Indicators
Source: Intermonte Partners SIM reclassified financial statements
Notes: 1. Personnel expenses include the compensation of Executive Directors, but exclude the compensation of Non-Executive Directors and the Board of Statutory Auditors; 2. Net of one-offs; 3. Other operating expenses include compensation of Non-Executive Directors and the Board of Statutory Auditors, depreciation, amortisation, and net impairments of tangible and intangible assets, and other operating income and expenses Source: Intermonte Partners SIM reclassified financial statements
| Consolidated Income Statement | ||||
|---|---|---|---|---|
| (Eu mn) | FY20 | FY21 | 21 vs 20 % | Key comments |
| Total net revenues | 40.7 | 43.8 | 7.7% | |
| Personnel expenses1 | (19.6) | (19.8) | 1.5% | |
| Operating expenses2 | (8.9) | (9.6) | 7.8% | |
| Total expenses | (28.5) | (29.5) | 3.5% | |
| IPO one off | - | (2.5) A |
n.m. | The IPO one-off costs are composed of a Eu1.8mn one-off bonus and direct A IPO costs for Eu737k |
| Consolidated pre-tax profit | 12.2 | 11.8 | (3.3)% | |
| Adjusted consolidated pre-tax profit | 12.2 | 14.4 | 17.4% | |
| Taxes | (3.2) | (3.1) B |
(2.7)% | 2021 taxes benefited from a patent box credit for ~Eu0.2mn but do not B |
| Tax rate | 25.9% | 26.1% C |
include the IPO tax credit of ~Eu0.3mn, which will impact 2022 taxes Tax rate of ~26% in line with historical levels C |
|
| Consolidated net profit pre-minorities | 9.1 | 8.7 | (3.5)% | |
| Net profit pertaining to minority shareholders | (1.3) | (1.5) D |
18.1% | Intermonte SIM minorities accounted for Eu1.5mn, ~14.6% of consolidated D |
| Consolidated net profit post-minorities | 7.8 | 7.2 | (7.2)% | net profit pre-minorities |
| Adjusted consolidated net profit | 7.8 | 9.1 E |
17.0% | Adjusted consolidated net profit is adjusted for the IPO cost E |
Notes: 1. Personnel expenses include compensation of Executive Directors, but exclude the compensation of Non-Executive Directors and the Board of Statutory Auditors; 2. Other operating expenses include compensation of Non-Executive Directors and the Board of Statutory Auditors, depreciation, amortisation and net impairments of tangible and intangible assets, and other operating income and expenses
Source: Intermonte Partners SIM reclassified financial statements
8.5% 12.5% 19.5%2 FY19 FY20 FY21 Note: * ROE=ROTE as Intermonte has no goodwill its Balance sheet
ROE*
Significant improvement of the ROE driven by the increase in profitability and rationalisation of Group capital
Net positive impact on capital of new RWA regulation for financial intermediaries and capital rationalisation initiative
Shareholder Returns
Historical shareholder payout at >90%, supported by capital solidity
Note: 1. The capital ratios as at 31 December 2021 have been calculated on the basis of the new regulation that entered into force on 30 June 2021 (Regulation (Eu) 2019/876 of the European Parliament (which amended EU 575/2013 (CRR)) and the Regulation (EU) 2019/2033 of the European Parliament and of the Council); 2. 2021 ROTE has been calculated on the adjusted consolidated net profit Source: Intermonte Partners SIM reclassified financial statements
| Consolidated Book Value | ||||
|---|---|---|---|---|
| (Eu mn) | FY20 | FY21 | 21 vs 20 % | Key comments |
| Group Consolidated Book Value1 | 70.0 | 53.8 | (23.2)% | |
| of which goodwill | - | - | A | Intermonte has no goodwill in its Book Value A |
| Group Tangible Consolidated Book Value1 | 70.0 | 53.8 | (23.2)% | |
| Total RWA | 263.2 | 119.3 | (54.7)% B |
The introduction of the IFR regulation in June 2021 has considerably B lowered RWA… |
| CET 1 | 71.5 | 47.6 | (33.4)% C |
C …more than offsetting the impact of the 2021 capital enhancement |
| Tier1 & Total Capital | 71.5 | 52.5 | (26.5)% D |
reserves2 initiative: the buyback (1Q) and the extraordinary distribution of (4Q)… |
| CET 1 Ratio | 27.2% | 39.9% | 1,275bps | D … and the issue of a new Tier1 bond for Eu5.0mn |
| Tier1 & Total Capital Ratio | 27.2% | 44.0% | 1,688bps |
| FY20 | FY21 | 21 vs 20 % | (Eu mn) | FY20 | FY21 | 21 vs 20 % |
|---|---|---|---|---|---|---|
| Liabilities and equity | ||||||
| 252.5 | 257.2 | 1.9% | Financial liabilities | 178.9 | 245.9 | 37.4% |
| 5.1 | 4.5 | (10.4)% | Other liabilities | 17.9 | 22.3 | 24.5% |
| 0.1 | 0.1 | (17.2)% | Total Equity | 80.9 | 63.9 | (21.1)% |
| - | - A |
n.m. | Shareholders equity | 70.0 | 53.8 2 | (23.2)% |
| 20.1 | 70.2 | 249.2% | Minority equity interests | 10.9 | 10.1 | (7.7)% |
| 277.7 | 332.1 | 19.6% | TOTAL LIABILITIES AND EQUITY | 277.7 | 332.1 | 19.6% |
Note: 1. Group consolidated Book Value is inclusive of the net profit for the period; 2. distribution of reserves for a total of Eu14.6mn
Source: Intermonte Partners SIM reclassified financial statements
Appendices
Various specialist teams offer consultancy on all available financial products to Intermonte's client base of over 750 investors
Dedicated desks deal with investors operating in the leading markets (Italy, UK, Continental Europe, USA)
Note: 1) paying clients as of 30 June 2020
Note: 1. As at 31/12/2021; 2. i.e: (i) direct purchase from a client of a security which, by the end of the same day, is sold back on the market or to another client; (ii) direct purchase from a client of a US option and, by the end of the same day, a European option with similar characteristics is sold on the market or back to another client; (iii) purchase of a government security in the market offset by the simultaneous sale of a security with similar characteristics in order to benefit from the positive differential between the implied prices/returns)
Note: 1. as at 31 December 2021
Note: 1) Event cancelled/postponed due to COVID19
| 1995 | 1997 | 1999 | 2000 | 2008 | 2010 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Intermobiliare Securities, the precursor to Intermonte SIM, is founded with Eu2.5mn in equity |
Banca Agricola Mantovana (BAM) enters Intermonte capital |
Intermonte becomes the leading1 brokerage house on the Italian equity market ------------------------------- Entry of MPS Group following its takeover |
Acquisition of Monte Paschi Mercato SIM: henceforth the company is known as Intermonte SIM -------------------------------- Websim is founded, |
Management buy-out: Intermonte managers acquire a majority controlling stake in the company |
Cattolica Assicurazioni buys a stake in Intermonte SIM through a reserved capital increase |
||||
| 2012 | 2013 | of BAM 2015 |
2016 | the digital division dedicated to the retail world 2017 |
2019 | 2021 | |||
| One of the main Specialist and Corporate Brokers |
Becomes the market leader1 for individual stock options |
Becomes main player in IPOs for mid and small cap |
Division | Intermonte Advisory and Management is set up |
Intermonte Holding partners acquire the remaining Banca |
Launch of the Digital Division of Intermonte, which |
IPO on Euronext Growth Milan --------------------------- |
||
| for listed Italian companies |
firms --------------------------- Crowdfunding partnership with ENEL |
--------------------------- Partnership commences with Politecnico di Milano for the authoring of joint analysis of market issues |
MPS stake | integrates the historic Websim brand with TIE (The Intermonte Eye), offering investment solutions to private banking |
Partnership with QCapital for club deals |
Management1
Management1 35%
Shares 11%
Note: 1. Includes the two shareholders with stakes above 5%: Alessandro Valeri: 7.1% and Gian Luca Bolengo: 7.1%; 2. Dario Grillo, Andrea Lago, Guglielmo Manetti, Guido Pardini, Gianluca Parenti, Fabio Pigorini; 3. Alessandro Valeri and Gian Luca Bolengo
Partner of Borsa Italiana in the "Sustainable Finance Partnership"
Research dossier analysing ESG reporting by listed Italian SMEs, in partnership with Milan Polytechnic University
| OIntermonte |
|---|
| Le strategie di comunicazione delle mid & small cap |
Intermonte SIM's activities are inspired by respect for the values and principles contained in the «Organisation, Management and Control Model» (as established in Legislative Decree 231/2001)
Intermonte's operations have never been interrupted by COVID-19 thanks to protecting employee safety through remote working, flu shots, and weekly rapid swab testing for employees working on site
Remote working: up to 2 days a week
Possibility of improving proficiency in English through free courses within the company
19 hires since 2020: o/w ~50% under 30, o/w ≥25% female
100% of employees on permanent contract
Note: 1. QCapital was founded in 2021 by Stefano Miccinelli, Renato Peroni, Massimo Busetti, Giovanni Pedersoli and Francesco Niutta
| (Eu mn) | FY20 | FY21 | 21 vs 20 % |
|---|---|---|---|
| 10 Net trading income |
13.8 | 10.2 | (26.3)% |
| 50 Fee and commission income |
28.1 | 32.3 | 14.8% |
| 60 Fee and commission expenses |
(2.4) | (2.7) | 12.9% |
| 70 Interest and similar income |
0.6 | 0.6 | 6.6% |
| 80 Interest and similar expense |
(1.5) | (2.5) | 63.8% |
| 90 Dividends and similar income |
3.0 | 6.0 | 101.8% |
| 110 OPERATING INCOME |
41.6 | 43.9 | 5.6% |
| 120 Net value adjustments for credit risk relating to: |
(0.3) | 0.0 | (107.3)% |
| b) financial assets measured at amortised cost | (0.3) | 0.0 | (107.3)% |
| 130 NET INCOME FROM FINANCIAL TRANSACTIONS |
41.2 | 43.9 | 6.5% |
| 140 Administrative expenses |
(28.1) | (31.0) | 10.3% |
| a) personnel expenses | (19.7) | (21.8) | 10.7% |
| b) other administrative expenses | (8.3) | (9.1) | 9.5% |
| 150 Net provisions for risks and charges |
(0.1) | - | n.m. |
| 160 Depreciation and net impairment losses on property and equipment |
(1.2) | (1.0) | (17.7)% |
| 170 Amortisation and net impairment losses on intangible assets |
(0.1) | (0.1) | (18.0)% |
| 180 Other operating income and expenses |
0.1 | (0.1) | (224.8)% |
| 190 OPERATING COSTS |
(29.4) | (32.1) | 9.3% |
| 200 Profit (Loss) from equity investments |
0.1 | - | (100.0)% |
| 240 PROFIT BEFORE TAX FROM CONTINUING OPERATIONS |
12.0 | 11.8 | (1.2)% |
| 250 INCOME TAX |
(3.2) | (3.1) | (2.7)% |
| 260 PROFIT AFTER TAX FROM CONTINUING OPERATIONS |
8.8 | 8.7 | (0.6)% |
| 270 Profit from discontinued operations after tax |
- | - | n.m. |
| 280 PROFIT (LOSS) FOR THE YEAR |
8.8 | 8.7 | (0.6)% |
| 290 Profit (loss) for the year attributable to minority interests |
1.3 | 1.5 | 18.1% |
| 300 PROFIT (LOSS) FOR THE YEAR ATTRIBUTABLE TO THE PARENT COMPANY |
7.5 | 7.2 | (3.9)% |
| (Eu mn) | FY20 | FY21 | 21 vs 20 % | |
|---|---|---|---|---|
| Assets | ||||
| 10 | Cash and cash equivalents | 0.0 | 12.8 | n.m. |
| 20 | Financial assets measured at fair value through profit or loss | 146.7 | 140.6 | (4.2)% |
| a) Financial assets held for trading | 146.7 | 140.6 | (4.2)% | |
| 40 | Financial assets measured at amortised cost: | 105.8 | 116.7 | 10.3% |
| a) loans and receivables with banks | 63.0 | 36.3 | (42.4)% | |
| b) loans and receivables with other financial institutions | 39.2 | 72.6 | 85.0% | |
| c) loans and receivables with customers | 3.6 | 7.8 | n.m. | |
| 80 | Property and equipment | 5.1 | 4.5 | (10.4)% |
| 90 | Intangible assets | 0.1 | 0.1 | (17.2)% |
| - | - | n.m | ||
| 100 | Tax assets | 3.8 | 5.5 | 44.7% |
| a) current | 3.2 | 4.4 | 38.5% | |
| b) deferred | 0.6 | 1.1 | 78.5% | |
| 120 | Other assets | 16.3 | 51.9 | n.m. |
| TOTAL ASSETS | 277.7 | 332.1 | 19.6% | |
| (Eu mn) | FY20 | FY21 | 21 vs 20 % | |
| Liabilities and equity | ||||
| 10 | Financial liabilities measured at amortised cost | 85.4 | 148.2 | 73.5% |
| a) liabilities | 85.4 | 148.2 | 73.5% | |
| 20 | Financial liabilities held for trading | 93.6 | 97.7 | 4.5% |
| 60 | Tax liabilities | 3.2 | 3.9 | 23.0% |
| a) current | 3.1 | 3.9 | 24.0% | |
| b) deferred | 0.1 | 0.1 | (10.7)% | |
| 80 | Other liabilities | 13.9 | 17.5 | 25.2% |
| 90 | Post-employment benefits | 0.1 | 0.1 | 66.4% |
| 100 | Provisions for risks and charges | 0.7 | 0.8 | 12.1% |
| c) other provisions for risks and charges | 0.7 | 0.8 | 12.1% | |
| 110 | Share capital | 3.3 | 3.3 | 0% |
| 120 | Treasury shares | (1.4) | (7.9) | 468.2% |
| 150 | Reserves | 60.3 | 51.2 | (15.1)% |
| 170 | Profit (loss) for the year | 7.8 | 7.2 | (7.2)% |
| 180 | Minority interests | 10.9 | 10.1 | (7.7)% |
| TOTAL LIABILITIES AND EQUITY | 277.7 | 332.1 | 19.6% |
Galleria de Cristoforis 7/8 20122 Milan (Italy)
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.