Interactive Brokers Group, Inc. · NASDAQ:IBKR
Interactive Brokers — June 2007 Sandler O'Neill Conference
10 slides from Interactive Brokers's conference presentation, Jun 7, 2007
Slide 1: June 2007 Sandler O'Neill Conference
June 2007 Sandler O’Neill Conference
Slide 2: Disclaimer
1 The following information contains certain forward-looking statements that reflect the Company's current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and
Slide 3: Introduction
Interactive Brokers Group became a public company on May 3, 2007 Optimizing the allocation of resources on a global network of electronic platforms is a major trend of our times Electronic exchanges, market makers, brokers and customers form the network Through our connections to 65 exchanges around
Slide 4: Our Competitive Strengths
Our Competitive Strengths Automated proprietary platform – Automation – An overwhelming competitive advantage Execute on 65 electronic exchanges and ECNs, in 23 countries, in 13 currencies Transact 15% of the world’s and 20% of the US listed equity based options volume Executed, cleared and settled
Slide 5: Historical P&L Summary Financial Results
Historical PL 4 Summary Financial Results (In millions) 2001 2002 2003 2004 2005 2006 Revenues: Trading gains $596 $472 $488 $423 $640 $805 Commissions and execution fees $44 $64 $93 $112 $132 $174 Net interest $17 $13 $13 $22 $103 $188 Other income $11 $8 $11 $7 $54 $86 Total net revenues $668 $557
Slide 6: Electronic Brokerage and Market Making Quarterly Data
Electronic Brokerage Market Making 5 Quarterly Data 2007 1Q 2Q 3Q 4Q 1Q ($ in 000s) Commissions and execution fees $39,366 $45,777 $42,817 $46,480 $56,336 Net interest income 9,591 12,707 14,712 16,906 18,264 65,159 76,189 75,384 81,646 94,500 Non-interest expenses 43,315 46,662 49,245 60,554 59,828
Slide 7: Global and US market share in exchange traded equity options
Global and US market share in exchange traded equity options 6 Market Share 1Q2006 21.7% 15.6% 2Q2006 22.6% 16.7% 3Q2006 21.1% 15.8% 4Q2006 20.2% 15.5% 1Q2007 19.9% 14.8% Period U.S. Market Share Global Market Share
Slide 8: Changes in Market Making
Exchanges are attempting to raise revenues by introducing different rules Priority and Precedence Payment for Order Flow Exchange Fees Cancellation Fees Some of the growth in exchange traded volume is not real (large crosses for Dividends and Interest) Professional institutional customers are compet
Slide 9: Historical Trends
8 Historical Trends Market Maker Options Volume and Trading Revenues 0 20 40 60 80 100 120 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Volume in Contracts (in MM's) $0 $100 $200 $300 $400 $500 $600 $700 $800 $90
Slide 10: The Future
Market structure imbalances will resolve themselves Expanding market making to more exchanges and more products will stabilize our results US market structure imbalances represent great opportunities for our electronic brokerage business, 1Q2006 to 1Q2007: DARTs up 28% Deposits up 51% Net revenues u
Interactive Brokers Group — June 2007 Sandler O'Neill Conference on 6ix