Evercore Inc. · NYSE:EVR
Evercore — Investor Presentation (November 2020)
34 slides from Evercore's investor presentation, Nov 13, 2020
Slide 1: Corporate Presentation November 13th, 2020
Corporate Presentation November 13th, 2020
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect our current views with respect to, among other things, Evercore’s operations and financial performance. In some
Slide 3: Our Goal and Our Priorities
Our Goal To help our clients meet their strategic and financial objectives, thus becoming the most respected independent investment banking advisory firm in the world – both in quality and in scale Our Priorities We are deeply committed to developing long-term, trusted Clients relationships with our
Slide 4: Addressing a Changing Environment
Addressing a Changing Environment
Slide 5: The Market Environment Leading Up To and During the COVID-19 Pandemic
The Market Environment Leading Up To and During the COVID-19 Pandemic Initial market uncertainty at the beginning of the COVID-19 pandemic was accompanied by: A significant decline in announced M&A volumes in April and May, followed by a meaningful increase over the last several months Numerou
Slide 6: Leveraging Our Broad Capabilities to Meet Our Clients' Evolving Needs
Leveraging Our Broad Capabilities to Meet Our Clients’ Evolving Needs Many clients initially shifted their focus to liquidity and balance sheet issues and away from strategic M&A transactions, though we are now seeing increased dialogue and activity around strategic matters and financial sponsor a
Slide 7: Significant Opportunities for Revenue Recovery and Long-Term Growth
Significant Opportunities for Revenue Recovery and Long-Term Growth Near and Medium-Term Revenue Recovery Opportunities Long-Term Growth Opportunities Recovery in productivity combined with footprint Significant opportunities remain in both sector and expansion and the development of ramping SMD
Slide 8: Serving Marquee and Emerging Growth Clients
Serving Marquee and Emerging Growth Clients M&A Advisory Advised on 3 of the 10 largest global deals announced in 9M 2020 #1 globally and in the U.S. among independent firms by volume of announced transactions in LTM Q3 2020 Advised the Special Committee of GCI Liberty on its $11.9 billion sal
Slide 9: Serving Marquee and Emerging Growth Clients
Serving Marquee and Emerging Growth Clients Restructuring and Balance Sheet Management1 Preeminent platform with dedicated SMDs that leverages the expertise of the entire firm Involved in 9 of the 15 largest bankruptcies by total actual liabilities year-to-date2 Pace of activity is significant
Slide 10: Leading Independent Research and Trading Firm Covering Every Major Sector
Leading Independent Research and Trading Firm Covering Every Major Sector Premier Equities Franchise Macro Focus Recognized as top independent research firm in the Institutional Investor All-America Equity Research Economics Surveys Policy Strategy Survey1 for 7th straight year #2 Overall Resear
Slide 11: Evercore's Growing, High-Quality Wealth Management Business
Evercore’s Growing, High-Quality Wealth Management Business Wealth Management AUM has grown at a rate of 15% since 2010 and continues to provide clients with crucial wealth management and asset allocation advice during the heightened volatility as a result of the COVID-19 global pandemic Overview AU
Slide 12: Expense Management, Liquidity and Capital Return
Expense Management, Liquidity and Capital Return Expense Management Liquidity Capital Return Compensation We are focused on maintaining our We remain committed to the strong and liquid balance sheet following principles for our We are committed to ensuring shareholders: employee compensation
Slide 13: Our Long-Term Strategy Has Not Changed
Our Long-Term Strategy Has Not Changed
Slide 14: Our Long-Term Strategy Has Not Changed
Our Long-Term Strategy Has Not Changed We remain focused on growing our market share and exiting the downturn in a stronger position, with our ultimate goal of being among the Top Global Advisors as measured by Advisory revenues unchanged Market Position by LTM Q3 2020 Advisory Revenue1 Evercore 3.0
Slide 15: Adjusted Financial Performance As of September 30, 2020
Adjusted Financial Performance As of September 30, 2020 Net Revenues1 ($ in millions) EPS1,2 Operating Margins1 $2,400 $10.00 35% $9.01 $8.92 $2,140 $2,083 $2,033 $2,026 28.4% $7.70 28% 27.2% $1,800 $7.50 26.0%25.8% $1,654 24.5% 23.6% $6.57 22.8%22.6% $1,457 21.8% 21% 20.1% $5.45 $1,239 $1,200 $5.00
Slide 16: Appendix I
Appendix I Investment Banking Performance and Expanded Capabilities
Slide 17: Our Advisory Client Coverage and Breadth of Capabilities Continues to Grow
Our Advisory Client Coverage and Breadth of Capabilities Continues to Grow Coverage Across All Major Sectors Independent Firm with Bulge Bracket Capabilities 2010 2014 2020 Public Oil & Gas M&A Strategic Advisory Sector & Real Power & Infrastructure Estate Utilities Transaction Structuring
Slide 18: Broad Geographic Footprint Diversifies Revenues
Broad Geographic Footprint Diversifies Revenues 50+ Countries Where Clients are Served ~1,900 Employees Worldwide1 18 Advisory Offices Globally ~1,100 Evercore Reach Evercore Offices Affiliate Offices Advisory Bankers2 Americas Europe / Middle East Asia / Australia 11 Atlanta Minneapolis Aberdeen Be
Slide 19: Significant Advisory Market Share Growth
Significant Advisory Market Share Growth Advisory market share among all publicly reporting firms has more than tripled since 2010 Evercore Advisory Market Share Among All Firms1,2,3 LTM Q3 2020 Market Share Among All Firms1,2,3 10.0% 25.0% 8.7% 8.2% 8.3% 8.2% 8.0% 20.0% 6.9% 6.0% 15.1% 6.0% 15.0% 4
Slide 20: Expanding Teams of A+ Talent
Expanding Teams of A+ Talent SMD growth supports increased sector coverage, broader capabilities, geographic expansion and overall advancement of the Evercore brand Advisory SMD Headcount1 Growth Advisory SMD Coverage2 Growth % Internally Promoted Number of Capabilities Addressed2 125 125 7% 10% 10%
Slide 21: Evercore's Expanded Capabilities Enhance Client Engagement
Evercore’s Expanded Capabilities Enhance Client Engagement Our capabilities go beyond traditional M&A, increasing our ability to advise and raise capital for our clients on a broad range of situations Capital Advisory - Balance Sheet Advisory/Capital Raising/Share Base Management Debt Advisory/DCM D
Slide 22: Appendix II: Our People and Corporate Citizenship
Appendix II Our People and Corporate Citizenship
Slide 23: Our Company is Only as Extraordinary as Our People
Our Company is Only as Extraordinary as Our People In addition to an extremely strong record of recruiting senior talent externally, we are deeply committed to being the best place to work for the most talented professionals in our industry and to hiring, training, developing, mentoring and promotin
Slide 24: Our Commitment to Being a Good Corporate Citizen
Our Commitment to Being a Good Corporate Citizen We measure our success not only by our client and financial achievements, but also by our contribution to the communities which we serve We are committed to creating the best possible work environment for our employees, to enhancing the diversity
Slide 25: Appendix III: U.S. GAAP Reconciliation to Adjusted Results
Appendix III U.S. GAAP Reconciliation to Adjusted Results (Unaudited)
Slide 26: U.S. GAAP Reconciliation to Adjusted Results (Unaudited)
U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Information in the following financial reconciliations presents the historical results of the Company from continuing operations and is presented on an Adjusted basis, which is a non-generally accepted accounting principles (“non-GAAP”) measur
Slide 27: U.S. GAAP Reconciliation to Adjusted Results (Unaudited)
U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Adjustments Associated with Business Combinations and Divestitures. The following charges resulting from business combinations and divestitures have been excluded from the Adjusted results because the Company’s Management believes that operati
Slide 28: U.S. GAAP Reconciliation to Adjusted Results: Net Revenues
U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Net Revenues (dollars in thousands) LTM LTM Twelve Months Ended December 31, Q3 2020 Q3 2019 2019 2018 2017 2016 2015 2014 2013 2012 Net Revenues - U.S. GAAP $ 1,996,724 $ 2,119,977 $ 2,008,698 $ 2,064,705 $ 1,704,349 $ 1,440,052 $ 1,223,273 $
Slide 29: U.S. GAAP Reconciliation to Adjusted Results: Operating Income & Net Income
U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Operating Income & Net Income (dollars in thousands) LTM LTM Twelve Months Ended December 31, Q3 2020 Q3 2019 2019 2018 2017 2016 2015 2014 2013 2012 Operating Income - U.S. GAAP $ 356,441 $ 531,194 $ 437,711 $ 542,077 $ 428,811 $ 261,174 $ 12
Slide 30: U.S. GAAP Reconciliation: Diluted Shares and Key Metrics
U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Diluted shares outstanding & key metrics (share amounts in thousands) LTM LTM Twelve Months Ended December 31, Q3 2020 Q3 2019 2019 2018 2017 2016 2015 2014 2013 2012 Diluted Shares Outstanding - U.S. GAAP 43,194 45,279 44,826 44,193 43,699 41
Slide 31: U.S. GAAP Reconciliation: Quarterly Net Income
U.S. GAAP Reconciliation to Adjusted Results (Unaudited) (dollars and share amounts in thousands, Net Income, Diluted shares outstanding & key metrics except per share data) Three Months Ended September 30, June 30, March 31, December 31, 2020 2020 2020 2019 Net Income from Continuing Operations - U
Slide 32: U.S. GAAP Reconciliation: Footnotes
U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Footnotes 1. Income (Loss) from Equity Method Investments has been reclassified to Revenue in the Adjusted presentation. 2. Interest Expense on Debt is excluded from Net Revenues and presented below Operating Income in the Adjusted results and
Slide 33: U.S. GAAP Reconciliation: Footnotes
U.S. GAAP Reconciliation to Adjusted Results (Unaudited) Footnotes 11. Expenses during 2020 that are excluded from the Adjusted presentation relate to separation and transition benefits and related costs as a result of the Company’s review of its operations and the acceleration of depreciation expen
Slide 34: Evercore
EVERCORE