Preliminary Results 1 31 May 2006 These materials do not - PDF document

Preliminary Results 1 31 May 2006

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

Group Finance Director Financial Review 3 Jim Pettigrew

Income Statement Year Year* Variance against prior year ended ended 31/03/06 31/03/05 Reported* Constant** £m £m £m % £m % Revenue 919.2 812.7 106.5 13 79.9 10 Net operating expenses (722.9) (638.7) (84.2) (13) (64.8) (10) Operating profit*** 196.3 174.0 22.3 13 15.1 9 Associates (net of tax) 3.2 (1.9) 5.1 N/A 5.1 N/A Net finance income 4.8 4.6 0.2 4 0.2 4 Profit before tax*** 204.3 176.7 27.6 16 20.4 12 * At reported FX exchange rates on a restated IFRS basis. ** At constant average FX exchange rates, adjusted for the impact of acquisitions. *** Excludes amortisation and impairment of intangibles arising on consolidation and 4 exceptional items.

Movement in Profit * £m 220 • Positive impact from FX 204.3 15.1 movements (mainly US$) 200 5.3 3.3 Average 05/06 – $1.79/£ 3.9 176.7 180 Average 04/05 – $1.85/£ 160 140 • Acquisitions: 120 United Fuels (Oct 05) 100 GovPx (Jan 05) Profit 04/05 Acquisitions (net) FX Profit 05/06 Organic Associates & interest * Pre-tax profit excluding amortisation and impairment of intangibles arising on consolidation and exceptional times. 5

Revenue and Net Operating Expenses Growth* 05/06 financial year 05/06 financial year % 20 10 0 Revenue Net operating expenses Net operating Revenue expenses Headline growth 13% 13% Underlying growth 10% 4% * Growth represents year ended 31/03/06 compared with year ended 31/03/05. Underlying revenue and net operating expenses growth excludes the impact of FX movements, material acquisitions and disposals and, in the 6 case of net operating expenses, bonuses and amortisation and impairment of intangibles arising on consolidation and exceptional items.

Revenue and Net Operating Expenses Growth* 05/06 financial year Underlying 5 year track record 05/06 financial year Underlying 5 year track record % % 14 20 12 10 10 8 6 0 4 Revenue Net operating expenses 2 Net operating Revenue expenses 0 Headline growth 13% 13% 01/02 02/03 03/04 04/05 05/06 Underlying growth 10% 4% Revenue Net operating expenses * Growth represents year ended 31/03/06 compared with year ended 31/03/05. Underlying revenue and net operating expenses growth excludes the impact of FX movements, material acquisitions and disposals and, in the 7 case of net operating expenses, bonuses and amortisation and impairment of intangibles arising on consolidation and exceptional items.

Group Revenue by Business Activity Year Year* Variance ended ended Against prior period 31/03/06 31/03/05 Reported* Constant** £m £m £m % £m % Securities broking 350.5 324.6 25.9 8 18.6 6 Derivatives & money broking 368.6 328.4 40.2 12 34.4 10 Energy broking 75.9 50.9 25.0 49 17.6 35 Electronic broking 98.3 83.8 14.5 17 12.4 15 Information Services 25.9 25.0 0.9 4 (3.1) (12) 919.2 812.7 106.5 13 79.9 10 * At reported FX exchange rates. ** At constant current FX exchange rates i.e. after restating prior year at current FX rates and 8 adjusting for the impact of acquisitions in the relevant period.

Expenses Classification as a % of revenue Variable component of broker remuneration Classification as a % of revenue Variable component of broker remuneration % 100 90 80 70 60 50 40 30 Year Year* 20 ended ended 10 31/03/06 31/03/05 0 51 50 Broker Rem. 04/05 05/06 3 3 T&E 04/05 05/06 4 5 Telecoms 45 42 Fixed 5 5 Other 55 58 Variable 16 Overheads 16 21 Operating Profit 21 * Restated IFRS basis. 9

Margins Group operating profit margin Electronic and voice broking margin Group operating profit margin Electronic and voice broking margin % 35.0 % 25 30.0 21% 21% 20% 20 17% 25.0 15% 14% 15 20.0 10 Electronic 15.0 Voice 5 0 10.0 00/01* 01/02* 02/03* 03/04* 04/05 05/06 5.0 0.0 03/04 04/05 05/06 * On a UK GAAP basis All numbers before relevant amortisation and exceptionals. 10

Geographic Segment Performance Americas Americas Growth % Revenue 14 Profit 18 Margin % 05/06 24 04/05 24 Note: all numbers are on a reported basis and relate to the 12 months period ended 31/03/06 compared with 12 months period ended 31/03/05. 11 Profit is operating profit before amortisation and impairment of intangibles arising on consolidation and exceptional items. : US margin to one decimal place: 05/06 24.3%, 04/05 23.6%.

Geographic Segment Performance Americas Europe Americas Europe Growth Growth % % Revenue 14 Revenue 11 Profit 18 Profit 12 Margin Margin % % 05/06 22 05/06 24 04/05 22 04/05 24 Note: all numbers are on a reported basis and relate to the 12 months period ended 31/03/06 compared with 12 months period ended 31/03/05. 12 Profit is operating profit before amortisation and impairment of intangibles arising on consolidation and exceptional items. : US margin to one decimal place: 05/06 24.3%, 04/05 23.6%.

Geographic Segment Performance Americas Europe Asia Pacific Americas Europe Asia Pacific Growth Growth Growth % % % Revenue 14 Revenue 14 Revenue 11 Profit 18 Profit (24) Profit 12 Margin Margin Margin % % % 05/06 7 05/06 22 05/06 24 04/05 11 04/05 22 04/05 24 Note: all numbers are on a reported basis and relate to the 12 months period ended 31/03/06 compared with 12 months period ended 31/03/05. 13 Profit is operating profit before amortisation and impairment of intangibles arising on consolidation and exceptional items. : US margin to one decimal place: 05/06 24.3%, 04/05 23.6%.

Earnings Year Year ended ended 31/03/06 31/03/05 £m £m Profit before tax* 204.3 176.7 Amortisation and impairment of intangibles (11.3) (0.8) Exceptional items - (9.1) Taxation (72.2) (57.2) Profit for the year 120.8 109.6 Attributable: Equity holders of parent 117.2 107.5 Minority interests 3.6 2.1 Earnings per share – basic 19.6p 18.3p Earnings per share – adjusted 21.5p 19.4p Interim dividend per share 2.50p 1.85p Final dividend per share 7.50p 6.40p * Before amortisation and impairment of intangibles arising on consolidation and exceptional items. 14 Note: all at reported exchange rates, and prior year restated for IFRS.

Exchange Rate Sensitivities Pre hedging impact on Including pre-tax profit EBS US$ +/- 10 cents £10m* £12m* Euro +/- 10 cents £7m** £7m * £4m transactional, £6m translational. 15 ** Almost entirely transactional.

UK Transactional Forex Hedging Year to 31/03/07 Currency Exposure (m) Cover US$ 117 100%* @ 1.79 Euro 162 25% @ 1.39-1.45** Year to 31/03/08 Currency Exposure (m) Cover US$ 120 40% @ 1.82 Euro 170 - * Percentage cover for the remainder of the financial year. ** Blended rate variable according to spot at maturity. Best case/worse case 16 position shown here.

Cash Flow Dep’n/ Group Private Asso- Working Initially Excep- Profit Tax Dividend Share Acqui- capex net placement ciates capital unsettled tionals before buy sitions cash matched tax back flow trans- actions 250 200 150 £109.1m 100 £ 50 £13.4m 0 -50 -100 12 mths March 06 12 mths March 05 17

Balance Sheet Year Year* ended ended 31/03/06 31/03/05 £m £m Intangibles arising on consolidation 276.7 256.5 Other non-current assets 172.6 130.9 Cash 339.9 231.3 Overdrafts (0.1) (0.6) Net cash 339.8 230.7 Private debt placement (128.7) - Net creditors (40.6) (98.1) Net assets 619.8 520.0 18 * On a restated IFRS basis, but excluding the gross up of all amounts due and payable by counter parties in respect of matched principal business.

19

Key Financial Success Factors over the Past 7 Years • Combination of organic and acquisition revenue growth • Effective cost management • Electronic broking leverage • Industry leading margin performance • Efficient conversion of profit to cash 20