Tp Icap Group Plc · LSE:TCAP
Tp Icap — Investor Day (December 2020)
11 slides from Tp Icap's investor day presentation, Dec 1, 2020
Slide 1: Global Broking
Nicolas Breteau Global Broking TP ICAP Capital Markets Day | 1 December 2020 19
Slide 2: Role of Inter-dealer Brokers
Role of Inter-dealer Brokers Why and how investment banks (dealers) use inter-dealer brokers ● Dealers use inter-dealer brokers (IDBs) to execute trades Top 3 IDB Revenue1 (FY 2019) between themselves — Inter-dealer trading is principally driven by market risk management needs — Inter-dealer trading
Slide 3: Global Broking: Overview
Global Broking: Overview World’s Largest Inter-dealer Broker ● TP ICAP is the world’s largest IDB1 Revenue Mix by Product (9M 2020) Revenue Mix by Geography (9M 2020) — Market share of c.40% Credit ● Global presence APAC — Present in 252 countries across Americas, EMEA and APAC regions FX & MM EMEA
Slide 4: Hub Strategy: Electronification, Liquidity Aggregation
Medium Term Strategy Hub Strategy: Electronification, Liquidity Aggregation ● “Hub” strategy responds to evolving market requirements and trends — Sell-side economic pressures (regulatory/compliance, B/S, reg cap) Each screen has a different look & feel — Greater internalisation by the largest deale
Slide 5: Hub Strategy: Potential Benefits for TP ICAP
Hub Strategy Potential Benefits for TP ICAP ● Higher quality revenue Illustration of Hubs — Stickier client volume Clients Banks — Increased execution/cross-selling opportunities across asset classes / products — More opportunities for Data & Analytics (to gather data & deploy Connectivity analytics
Slide 6: Rates Hub
Rates Hub 2020 Progress & Medium Term Strategy Progress made in 2020 TP ICAP today • GBP Rates Hub (ICAP) Automation ● Enhancement of electronic platform capability (IRO1 & Gilts) • IRO1 multi-brand offering — Enhancement of market-leading ICAP volume matching functionality • Upgraded matching engin
Slide 7: FX Hub
FX Hub 2020 Progress & Medium Term Strategy Progress made in 2020 TP ICAP today • Broad product range Efficiency ● Cross-brand electronification/ aggregation (FX options) • Single login to display TP & ICAP liquidity for FX Options and Asian NDFs / Forwards Straight-through processing — Launched cro
Slide 8: Credit Hub
Credit Hub 2020 Progress & Medium Term Strategy Progress made in 2020 TP ICAP today • Broad array of products with strong D2D focus Efficiency ● Cross-brand cross product diversification • Choice of straight-through-processing methods • Market Data connectivity — Rolled out the first solution specif
Slide 9: Global Broking Financial Targets
Global Broking Financial Targets ● Financial targets Contribution Margin Operating Margin — Revenue Growth: c.20% c.42% — Medium term target: c.1% CAGR c.19% c.40% — Contribution Margin: 17.5% 38.6% — 2023 target: c.40% — Medium term target: c.42% 2019 32023 year 5 year Medium 2019 32023 year 5 year
Slide 10: Disclaimer
Disclaimer This presentation has been prepared by TP ICAP plc (together with its subsidiaries, the “Group”) solely for informational purposes. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of t
Slide 11: TP ICAP Capital Markets Day
TP ICAP Capital Markets Day 1 December 2020