Investment Case

Investor Overview

Our vision is to be the world’s most trusted, and innovative, liquidity and data solutions specialist. To achieve this, we are focused on the delivery of three strategic priorities:

1.   Transforming our business;
2.   Diversification; and
3.   Dynamic capital management.

We aim to deliver sustainable shareholder value in the medium term. We have a clear strategic roadmap and a strong franchise to do so. We are well positioned for current market conditions through our developed business model, market-leading positions, major geographical presence, deep liquidity pools, and cutting-edge technology.

Why invest?

⦁ Market share of 46% in listed peer group; #1 positions in Global Broking, Energy & Commodities and Parameta Solutions;
⦁ Unrivalled connectivity and long-established relationships with top tier investment banks.

⦁   Largest global inter-dealer broker with significant scale;
⦁   Top 5 liquidity venue globally;
⦁   Well advantaged as central banks withdraw liquidity, underlining the enduring relevance of TP ICAP’s role as a private sector liquidity provider.

⦁   Well diversified business model – c. 65% of revenue generated outside the UK and c. 60% USD-denominated;
⦁   Growing buyside connectivity provides diversification;
⦁   Presence in key markets across 28 countries.

High profit to cash conversion across the business with an attractive dividend yield for income investors.
Group cash conversion was 124% in 2023, exceeding our target of 80%.

⦁ Strong track record of creating new scale businesses (e.g. Parameta Solutions);
⦁ Well positioned for future growth opportunities - Environmentals (e.g. trading of emissions credits), Digital Assets (crypto assets and tokenisation), and Dealer-to-Client trading of credit instruments.

Parameta Solutions is a substantial Data & Analytics business with high quality, high margin growth - 96% subscription-based revenues;
98% client renewal rate;
Expanding through partnerships and new growth opportunities (e.g. benchmarks and indices).
Exploring options to unlock inherent value in Parameta Solutions, which include a potential IPO of a minority stake in the business.

Dynamic capital management – Freed up £100m of cash (end 2023) for debt reduction;
We announced a £30m share buyback programme in August 2023, which was completed in January 2024.
A second £30m buyback programme was announced in March 2024.
Subject to our balance sheet and investment needs, we are assessing opportunities to free up more cash and pay down more debt, and/or return additional capital to shareholders.

Investment Case

Investor Overview

Why invest?

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