Tp Icap Group Plc · LSE:TCAP
Tp Icap — Investor Day (December 2020)
10 slides from Tp Icap's investor day presentation, Dec 1, 2020
Slide 1: Joanna Nader & Mark Pumfrey: Liquidnet
Joanna Nader & Mark Pumfrey Liquidnet TP ICAP plc Interim Results for the six months ended 31 July 2020 | 7 August 2020 47
Slide 2: Liquidnet Overview
Liquidnet Overview Leading Global Electronic Trading Network ● Transaction is highly complementary to TP ICAP & will accelerate delivery of Group Revenue Mix Group Revenue and our strategy & boost our growth trajectory by Region3 (2019) EBITDA4 ($m) ● Trusted brand and partner to the buy-side for ~2
Slide 3: Liquidnet Equities
Liquidnet Equities Leading Dark Execution Specialist ● Dark trading is a critical and stable portion of global market activity Liquidnet Market Share in Europe — Key part of market activity in Europe 20% 3% — Accounts for ~15% of market volume in US1 15% 2% ● Initially established to facilitate bloc
Slide 4: Liquidnet Fixed Income
Liquidnet Fixed Income Extensive Global Network with Substantial Growth Potential ● Comparatively early stage business, launched in 2015 Trading Platforms Used, Split by Trading Protocol3 — US and European IG and High Yield launched Sep 2015 — Emerging Market bonds launched October 2018 0% 20% 40% 6
Slide 5: Focus Opportunity #1: D2C Electronic Credit Trading
Focus Opportunity #1: D2C Electronic Credit Trading Leveraging TP ICAP’s Network & Building on Liquidnet’s Capabilities ● Post-2008 regulation prompted behavioural changes that US D2C Corporate Bond Trading Corporate Bonds Electronic meaningfully altered market structure Volume (ADV, $bn) Trading Vo
Slide 6: Focus Opportunity #2: D2C Electronic Rates Trading
Focus Opportunity #2: D2C Electronic Rates Trading Leveraging Liquidnet’s Platform and TP ICAP’s Dealer Connectivity / Product Expertise ● Regulatory change has encouraged growth in OTC Rates derivatives, OTC Interest Rate Derivatives US Treasuries Average Daily Trading compared with exchange-traded
Slide 7: Focus Opportunity #3: Enhanced Data & Analytics (D&A)
Focus Opportunity #3: Enhanced Data & Analytics (D&A) Leverage Complementary Capabilities with Cross-Selling Potential ● Accelerate D&A’s buy-side penetration — Sell TP ICAP’s data to ~500 fixed income1 buy-side clients already on- boarded on Liquidnet’s platform — Enhance TP ICAP’s objective of div
Slide 8: Liquidnet: Growth & P&L Targets
Liquidnet: Growth & P&L Targets1 Medium Term Targets ● Key Model Drivers and Assumptions Revenue Target ($m): 3-year CAGR of c.17%2 — Equities 600 — Top-line growth in line with market volumes/pricing trends — Low single-digit operating margin improvement — Credit 400 — Build on existing infrastruct
Slide 9: 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 10: TP ICAP Capital Markets Day
TP ICAP Capital Markets Day 1 December 2020