Stonex Group Inc. · NASDAQ:SNEX
Stonex — Investor Presentation (2022)
28 slides from Stonex's investor presentation, 2022
Slide 1: Investor Presentation 1st Quarter 2022
Investor Presentation 1st Quarter 2022 PRESENTATION TITLE GOES HERE Business Entity Goes Here (e.g. INTL FCStone Financial Inc.) Business Entity Membership If Applicable Goes Here (e.g. Member FINRA/MSRB/SIPC) Business Division Goes Here (e.g. FCM Division) NAME GOES HERE Job Title Goes Here
Slide 2: Disclaimer
DISCLAIMER The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicab
Slide 3: Company Highlights
Company Highlights 15.8% 29% CAGR TTM Return on Equity Book Value (ending 12/31/21) FY 2003-2021 32% CAGR 0.7x Operating Revenue Operating Revenue FY 2003-2021 9.0x EPS 1.3x Price to Book (based on 12/31/21 market capitalization) 3
Slide 4: Investment Highlights
Investment Highlights Leading global financial services platform for mid-market UNIQUE FINANCIAL institutional and commercial customers and retail traders. SERVICES PLATFORM Integral part of the global financial infrastructure TRACK RECORD A 19-year track record of consistent and significant growth
Slide 5: We Connect Clients to Markets
Who We Are We Connect StoneX provides institutional-grade global market access, end-to-end Clients to clearing and execution, high-touch service and deep expertise through Markets one trusted partner We Monetize We monetize client activity over our global network through the Network commissions and
Slide 6: StoneX at a Glance
StoneX at a Glance 36 Exchanges 18,000+ OTC Products 140 Currencies Global Execution, Clearing & Custody Across Equities, Fixed Income, FX, Commodities and Crypto $3.7T 52,000+ $6B+ $953M 370,000 Volume Traded* Institutional, Customer Equity Capital Commercial & Retail Clients Assets 146M Payments C
Slide 7: Our Global Footprint
Our Global Footprint CUSTOMER MAP MORE THAN 420,000 CLIENTS IN MORE THAN 180 COUNTRIES OVER 3,200 STAFF LOCATED IN 18 COUNTRIES AND 5 CONTINENTS Americas EMEA APAC Exchanges and Industry Associations Regulatory Bodies 7
Slide 8: Company Timeline
Company Timeline StoneX’ International International Listed on Global Assets & FCStone Assets NASDAQ Currencies merge. Becoming Founded 1981 1994 Ltd.- 2004 INTL FCStone - 2009 ie) 1°) 1°) Q PayCommerce 1 1 1 . Financial Coininvest Quest Capital Solutions, GmbH Strategies, Inc. Giroxx GmbH Ambrian L
Slide 9: Integral Part of the Global Financial Infrastructure
Integral Part of the Global Financial Infrastructure Efficient clearing and settlement on 36 exchanges and across 140 foreign Clearing and exchange markets Settlement $6+ billion of Client Float Member of SWIFT, across our FCM, Broker- Payments Custody Dealer and Retail OTC delivering customer payme
Slide 10: Unique Financial Services Platform
Unique Financial Services Platform Global Diversified INSTITUTIONAL RETAIL COMMERCIAL PAYMENTS Client Base Risk Profile RISK TAKERS RISK HEDGERS TREASURY MANAGEMENT TTM Net Operating 51% of Net Operating Revenue 49% of Net Operating Revenue Revenue ▪ Global trading, ▪ Leading retail platforms ▪ Tail
Slide 11: Global Multi-Asset Product and Service Offering
Global Multi-Asset Product and Service Offering FIXED INCOME EQUITIES Government Bonds I C R US Agency Products I C R Global Cash Equities I C R ETFs and Mutual Funds I C R US Treasury Bills MBS US Cash Equities US ETFs US Notes and Bonds CMO European Cash Equities European ETFs US TIPS CMBS Canadia
Slide 12: Track Record of Success
Track Record of Success STOCKHOLDER RETURN LONG-TERM FINANCIAL PERFORMANCE CAGR CAGR 2,500 $1,800 32% 29% 29% $1,673 19% 6% 9% $1,600 2,000 $1,400 $1,306 $1,200 Index (2003 = $100) 1,500 $1,000 $904 $800 1,000 $600 $400 500 $200 - $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 13: Track Record of Success
Track Record of Success OPERATING REVENUE ($MM) NET INCOME FROM CONTINUING OPERATIONS ($MM) 2000 180 $170 $1,673 $1,744 160 $139 1500 $1,308 140 $116 $1,106 120 $976 100 $85 1000 $784 80 $56 60 500 40 20 $6 0 0 2017 2018 2019 2020 2021 LTM 2017 2018 2019 2020 2021 LTM STOCKHOLDER’S EQUITY ($MM) ADJU
Slide 14: Diverse and Resilient Business Model
Diverse and Resilient Business Model • Global access to over 36 exchanges and 18,000 OTC products • Clients in over 180 countries served by global footprint of more than 3,200 staff • Global payment solutions in over 185 countries and 140 currencies • Local presence provide “Boots on the Ground” to
Slide 15: Multiple Near-Term and Long-term Macro Drivers of Growth
Multiple Near-Term and Long-term Macro Drivers of Growth Volatility Customer Behavior • Business model generates financial value from market volatility, as • Strong trend of increased retail trading of financial products, buttressed higher volatility drives increased activity and transaction volumes
Slide 16: Interest Rate Sensitivity
Interest Rate Sensitivity Average Invested Client Balances & Interest Earnings by Quarter 7,000 6.0 0.18% 6,000 0.20% $154mm 0.19% $147mm 5.0 0.19% 0.22% $129mm $1,658mm 5,000 $97mm $1,517mm $1,632mm 4.0 $103mm $2.9mm 4,000 $1,356mm USDmm $1,325mm $2.5mm $2.8mm $2.6mm $2.3mm 3.0 3,000 $4,331mm 2.0 2
Slide 17: Opportunistic Industry Consolidator
Opportunistic Industry Consolidator Well-Positioned to Take Advantage of Further Consolidation Selected Acquisitions • StoneX maintains an advantageous position in a highly Successful Track Record of Acquisitive Growth and regulated industry where clients reward counterparties Platform Integration A
Slide 18: Key Strategic Objectives: Our Strategy
Key Strategic Objectives: Our Strategy Grow and Build Our Digitize our Diversify our Compound Capital Ecosystem Business Customer Base Expand products and Increase market share Increase efficiency and Expand capital base services client engagement Address more customer Expand presence in large Reduc
Slide 19: Recent Financial Results
StoneX’ RECENT FINANCIAL RESULTS
Slide 20: Fiscal Q1 2022 & TTM Highlights
Fiscal Q1 2022 & TTM Highlights First Quarter* Highlights Net Income • On a consecutive quarterly basis (vs. Q4 2021): Operating Revenues • Operating revenues up 15% or $60.4mm As Reported Adjusted • Earnings up 471% or $34.4mm $450.5mm $41.7mm $43.7mm • Diluted EPS up 467% or $1.68 Up 19% Up 114% U
Slide 21: Review of Key Performance Indicators (TTM)
Review of Key Performance Indicators (TTM) Compounding Capital Target: Annual shareholder return on equity of 15% TARGET MET 15.8%* Flexible Cost Structure TARGET MET Target: >50% of total variable costs to total non-interest expense 56.6% Revenue per Employee Target: >$500k per annum TARGET MET $55
Slide 22: Key Financial Results
Key Financial Results Three Months Ended TTM (in millions, except share and per share December March June September December March June September December December amounts) 31, 2019 31, 2020 30, 2020 30, 2020 31, 2020 31, 2021 30, 2021 30, 2021 31, 2021 31, 2021 Operating revenues $276.8 $366.8 $322
Slide 23: Balance Sheet Summary
Balance Sheet Summary USDmm 12/31/2020 12/31/2021 Cash and cash equivalents 1,033.7 983.4 Cash, securities and other assets segregated under federal and ◼ Conservatively capitalized with moderate debt other regulations 1 2,203.9 2,111.7 • 1.04x Debt/Equity as of 12/31/21 Securities purchased under a
Slide 24: Transaction Volumes and Other Select Data
Transaction Volumes and Other Select Data December March June September December March June September December 31, 2019 31, 2020 30, 2020 30, 2020 31, 2020 31, 2021 30, 2021 30, 2021 31, 2021 Listed derivatives (contracts, 000’s) 34,061 47,611 37,627 35,353 37,222 37,119 35,756 36,004 36,713 Listed
Slide 25: Appendix
StonexX’ APPENDIX
Slide 26: Non-GAAP Reconciliation of Adjusted Net Income and Adjusted Return on Equity
SNEX: Non-GAAP Reconciliation of Adjusted Net Income and Adjusted Return on Equity (in millions) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Net income (loss) (non-GAAP) reconciliation: Net (loss) income, as reported (GAAP) $ 77.4 $ 19.5 $ 55.3 $ 34.2 $ 7.3 $ 41.7 Gain on acquisitions, net of re
Slide 27: Non-GAAP Reconciliation of Adjusted Net Income and Adjusted Return on Equity (2)
SNEX: Non-GAAP Reconciliation of Adjusted Net Income and Adjusted Return on Equity (2) Twelve Months Ended (in millions) 9/30/2017 9/30/2018 9/30/2019 9/30/2020 12/31/2020 9/30/2021 12/31/2021 Net income (loss) (non-GAAP) reconciliation: Net (loss) income, as reported (GAAP) $ 6.4 $ 55.5 $ 85.1 $ 16
Slide 28: End Notes
End Notes These notes refer to the financial metrics and/or defined term presented on: Slide 13: (1) Adjusted Net Income adds back effects of the below items for the respective financial year: 2017: $39.4m of bad debt expense, net of incentive recapture, related to our physical coal business in Sing