Annual Results Presentation London, 19 May 2009 These materials do - PowerPoint PPT Presentation

Annual Results Presentation London, 19 May 2009

These materials do not constitute an offer to sell or the solicitation of an offer to purchase any security. These materials contain "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on current Company expectations and are subject to risks and uncertainties, which could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to: fluctuations in interest rates and foreign currency exchange rates; market acceptance of new trading technologies; global and regional economic conditions and legislative, regulatory and political developments; and domestic and international competition in the Company's global markets. Additional information regarding these and other factors is available in the Company's reports available on request from the Company. This document may not be distributed where to do so would be unlawful. This document may not be distributed in the UK except to persons falling within article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. 2

Financial results Strong growth in revenue, profit, EPS and dividend +23% +9% +9% +5% Revenue Profit* EPS** DPS*** * Pre-tax profit before amortisation and impairment of intangibles arising on consolidation and exceptional items. ** Adjusted basic 3 *** Proposed full year dividend

Group Finance Director Matthew Lester

Financial summary • Top and bottom line growth in challenging markets • Continuing to invest in growth areas • Investments impact margins • Cost reduction to mitigate bottom line impact • Another year of strong cash generation • Robust balance sheet 5

Group profit before tax Year to Prior VAR 31 Mar 09 Year vs PY Underlying Growth £m £m Revenue 1,601 1,304 23% % 10 Net operating expenses* (1,240) (972) (28)% 8 Operating profit* 361 332 9% 6 Net finance charge (24) (7) n/m 4 Associates 9 5 80% 3% Profit before tax* 346 330 5% 2 (3)% 0 Mar 09 Mar 08 -2 Margin 23% 25% Impact of acquisitions (2)% -4 and investments on Revenue Operating profit margin * Before amortisation and impairment of intangibles arising on consolidation and exceptional items. Underlying growth excludes the impact of foreign exchange and net acquisitions. 6

Segmental analysis Year to Underlying Growth Headline variance 31 Mar 09 £m vs prior year Voice % Revenue 1,225 24% 5 5% Operating profit 212 4% 4% Margin 17% (3)ppt 2% 0 Electronic Revenue Operating profit (including post trade) Revenue 324 19% -5 Operating profit 126 18% (9)% Margin 39% +0ppt -10 Revenue Operating profit Information Revenue 52 30% Operating profit 23 5% -15 Voice Electronic Margin 44% (11)ppt The above table excludes amortisation and impairment of intangibles arising on consolidation and exceptional items. 7 Underlying growth excludes the impact of foreign exchange and net acquisitions.

Analysis of ICAP operating profit Operating profit* Post-trade business Year to 31 March 09 Subsidiaries - Reset - Traiana 7% 6% Associates 32% 35% - TriOptima (40% stake) 61% 59% Post-trade financials 08/09 (including share of associate) £m Pro-forma revenue 87 Voice Electronic Information Pro-forma operating profit 43 *Operating profit excludes amortisation and impairment of intangibles arising on consolidation and exceptional items. 8

EMEA Year to Headline variance vs 31 Mar 09 Underlying Growth prior year £m % % Revenue 729 20 10 Net operating expenses (556) (26) 8 Operating profit 173 4 8% 6 4 Mar 09 Mar 08 2 3% Margin 24% 27% 0 Revenue Operating profit The above table excludes amortisation and impairment of intangibles arising on consolidation and exceptional items. 9 Underlying growth excludes the impact of foreign exchange and net acquisitions.

Americas Headline Year to variance vs Underlying Growth 31 Mar 09 prior year £m % % 10 Revenue 644 22 Net operating expenses (506) (27) 5 Operating profit 138 7 0 (4)% (13)% -5 -10 Mar 09 Mar 08 -15 Margin 21% 24% -20 Revenue Operating profit The above table excludes amortisation and impairment of intangibles arising on consolidation and exceptional items. 10 Underlying growth excludes the impact of foreign exchange and net acquisitions.

Asia Pacific Headline variance vs Year to Underlying Growth prior year 31 Mar 09 % £m % 15 Revenue 228 37 Net operating expenses (178) (37) 12% Operating profit 50 39 10 9% 5 Mar 09 Mar 08 Margin 22% 22% 0 Revenue Operating profit The above table excludes amortisation and impairment of intangibles arising on consolidation and exceptional items. 11 Underlying growth excludes the impact of foreign exchange and net acquisitions.

Net operating expenses Year to 31 March 09 Investments % point Acquisitions £m (1)% 13% 15% 1% movement 1,300 - Link Brokers - Traiana (15) 12 6 1,250 IT - Shipping 1,240 44 Investments 1,200 New initiatives Acquisitions 94 1,150 Cash Equities - UK, US & AP 1,100 Emerging markets Bonus 32 - Brazil 16% 1,050 FX 95 Credit 1,000 - US CDS Innovation 950 972 - Patent - LME 900 Year to Mar 08 FX & Acquisitions Cost Savings Re-org costs Year to Mar 09 Performance Investments / bonus Increased IT The above table excludes amortisation of intangibles arising on consolidation and exceptional items. 12

Impact of investments Year to Year to 31 Mar 09 31 Mar 08 Revenue from new business started or acquired in last 3 years 28% 20% IT Spend as a % of revenue 11% 12% Staff compensation as a % of revenue 59% 56% Revenue per voice broker £560k £499k Voice broker increases Voice brokers (Mar 08) 2,136 Focus areas + 213 Reallocated - 45 Voice brokers (Mar 09) 2,304 . 13

Impact of foreign exchange Impact on 2008/09 Transactional* Translational** Total operating profit £m £m £m Profit increase 12 30 42 Estimated impact at current FX rates for Transactional Translational Total 2009/10 on operating profit*** £m £m £m Dollar 20 31 51 Hedged 2009/10 85% @ $1.64/£ Euro 13 1 14 Hedged 2009/10 95% @ €1.27/£ 65 * Effective transactional rates for year to 31 March 2009 are $1.92/£ and €1.36/£ ** 2008/09 yearly translational rates of $1.72/£ and €1.21/£ 14 *** Assumes average rates of $1.50/£ and €1.10/£ for 2009/10

Earnings Year to Year to 31 Mar 09 31 Mar 08 £m £m Profit before tax* 346 330 Amortisation and impairment of intangibles (65) (44) Exceptional items - (11) Tax (95) (97) Profit for the year 178 186 Attributable to: Equity holders of parent 175 168 11 10 Minority interests Full year dividend 17.05p 15.65p Earnings per share – basic 27.6p 26.4p Earnings per share – adjusted basic 34.1p 31.3p * Before amortisation and impairment of intangibles arising on consolidation and exceptional items. Note: At reported exchange rates. Adjusted weighted average number of shares year ended March 09 - 634m (March 08 - 635m) 15 .

Movement in free cash flow Profits vs free cash flow Year to Year to Year to Mar 07 Mar 08 Mar 09 Cash from operations £m £m £m Profit pre amortisation* 166 206 229 500 Free cash flow 190 232 296 Cash > Profit 24 26 67 450 Trading 33 Working capital 41 400 11 Calculation of Year to Year to 7 free cash flow 31 Mar 09 31 Mar 08 350 £m £m 455 363 Cash from operations 455 300 Interest and tax (101) (95) 363 Cash flow from operating 354 268 250 activities (63) (43) Capital expenditure 200 5 7 Dividends from associates Mar-08 Net impact of Cash impact of Operating Mar-09 initially exceptional Increase in and investments unsettled items cash items Free cash flow 296 232 * Profits after tax excludes amortisation and impairment of intangibles arising on consolidation. 16

Net borrowings Movement in net borrowings £m 250 (132) 296 200 150 100 (200) 50 0 Mar-08 Free cash Dividends and Acquisitions Other Mar-09 Free Cash share buybacks (59) -50 -100 (126) (31) -150 17

Free cash flow & balance sheet Free cash flow Strong balance sheet Free cash flow £296m As at 31 March 09 Dividends paid £(106)m Cash £433m FCF post dividend £190m Gross debt £(559)m Net debt £(126)m Principal Acquisitions Link Equity derivatives Gross debt/EBITDA Reset minority buyout Post-trade services 31 March 2009 1.4x 18

Financial summary • Top and bottom line growth in challenging markets • Continuing to invest in growth areas • Investments impact margins • Cost reduction to mitigate bottom line impact • Another year of strong cash generation • Robust balance sheet 19

Group Chief Operating Officer Mark Yallop