London Stock Exchange Group plc · LSE:LSEG
London Stock Exchange — Barclays Capital Global Financial Services Conference 2011
21 slides from London Stock Exchange's conference presentation, September 2011
Slide 1: Barclays Capital Global Financial Services Conference
Doug Webb Chief Financial Officer London Stock Exchange Group plc Barclays Capital Global Financial Services Conference New York - September 2011
Slide 2: Agenda
Agenda • Strategy - overview and progress • Developments by business segment • Recent results overview • Q&A 2
Slide 3: Delivering on our strategy
Delivering on our strategy • Driving efficiency — Control operational costs Getting in shape — Implement new technology — Adjust business model and pricing to align with customer needs • Building scale — Service to international customers — Scale drives efficiencies • Increasing scope — Increase div
Slide 4: Delivering on our strategy: Getting in shape
Delivering on our strategy Getting in shape • Continued focus on cost reduction – – FY 2011 operating expenses down 4% overall, down 8% on organic basis – FY 2010 down 8% on organic basis • Technology systems replacement programme – starting with roll-out of low- cost, high performance Millennium Ex
Slide 5: Strategy - Leveraging our assets
Strategy - Leveraging our assets • Launch of Turquoise Derivatives through integration with EDX • Operating on SOLA technology • FTSE 100 Index Futures June 2011; FTSE 100 and single stock options to follow • On-going programme of product launches • Launch new markets – Retail Bonds (ORB), MTS Credi
Slide 6: Strategy - Developing opportunities
Strategy - Developing opportunities • Building scale and diversity through acquisition – Turquoise, MillenniumIT and FSA Transaction Reporting Service (to complete Oct 2011) • Financial Technology opportunities across asset classes, including services to back offices through technology, post trade f
Slide 7: Strength in diversification
Strength in diversification Attractive and established building blocks for growth Current strategic focus #1 market globally for international listings • Primary markets: Expand our global franchise – #1 global listing #1 cash equity trading business in Europe venue for international companies • Equ
Slide 8: Capital Markets - Pre-eminent international capital raising venue
Capital Markets - Pre-eminent international capital raising venue • Good start to 2011 – Primary issuance increased • Pre-eminent venue – maintaining a competitive position versus other exchanges • Pipeline good – more international – though subject to market conditions in near term 8
Slide 9: Capital Markets - Share of trading
Capital Markets - Share of trading • UK and Italy share of trading 63.5% and 83.6% (Jan-Aug 2011, excluding Turquoise) 9
Slide 10: Capital Markets - Turquoise
Capital Markets - Turquoise • Turquoise growing; now 6% of European cash equities trading – no 2 MTF in Europe • 28% share of European MTF dark segment; no 2 in Europe • Launch of Turquoise Derivatives – June 2011 10
Slide 11: Capital Markets - Fixed Income
Capital Markets – Fixed Income • MTS covers 15 European markets: strong growth seen over last year in France, Netherlands and Spain • Gilts launched on the interdealer MTS Cash platform and the MTS BondVision multi-dealer-to-client platform • MTS Credit to launch by end 2011; trading in more than 2,
Slide 12: Post Trade: Strategy
Post Trade: Strategy • Provide capital markets with the most efficient post trade arrangements • Build the scale of our offering throughout the post trade process • Champion greater post trade efficiency and competition in Europe Clearing • Providing clearing services for Turquoise derivatives • New
Slide 13: Post Trade Services
Post Trade Services Growth in underlying volumes and good treasury management Total income Highlights Clearing revenues higher on increased Italian derivatives and strong MTS fixed income volumes Settlement revenues lower following increased netting efficiency Custody Assets under management i
Slide 14: Post Trade: Delivering on our strategy
Post Trade: Delivering on our strategy Clearing Net treasury income benefiting from: • Management changes – greater use of broader range of banks • Investment made in risk and treasury management • Increased margin collected from higher volumes, new markets and increased direct participation from no
Slide 15: Information Services
Information Services • Real time data - terminals stable, • New initiatives: — Non-displayed data fees implemented January 2011 — Direct reporting service live 2011 • Other Information Services — FTSE – FY 2011 total revenues up 18%, FTSE/Xinhua index now 100% owned (renamed FTSE China) – largest Ch
Slide 16: Technology Services
Technology Services • Millennium Exchange successfully rolled out on Turquoise and LSE – and will be used by Johannesburg SE and Oslo Bors • World leading consistent low latency performance • IDEM roll out on SOLA and upgrade for Turquoise Derivatives 16
Slide 17: FY 2012 Q1 Interim Management Statement July 2011
FY 2012 Q1 – Interim Management Statement 20 July 2011 • Strong increase in total income, up 14% on Q1 last year (up 12% at constant currency) to £190.2 million • Primary markets revenues up 22%, with growth in number of new issues and money raised • Share of cash equities trading was stable: • 64.6
Slide 18: Diversified Group income
Diversified Group income FY 2012 Q1: £190.2m Total income £m Total income % FY 2012 Q1 £190.2m £167.3m Capital Post Trade Information Technology Other Markets 42% 27% 23% 6% 2% 18
Slide 19: Summary
Summary Financial Performance • Solid FY 2011 financial results – total income up 7%, 4% reduction in operating expense and AEPS up 23% • Q1 FY 2012 income up 14% to £190m • Benefits of diversified business delivering growth across number of business activities Delivering on Strategy • Getting in sh
Slide 20: Contacts and Information
Contacts and Information Information on the full range of products and services can be found at: www.londonstockexchange.com If you need information on any Group products, please contact: Paul Froud Tom Woodley Head of Investor Relations Investor Relations Manager Tel: +44 (0)207 797 1186 Tel: +44 (
Slide 21: Disclaimer
No representation or warranty, expressed or implied, is made or given by or on behalf of London Stock Exchange Group plc (the “Company”) or any of its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation and no respo
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