London Stock Exchange Group Plc · LSE:LSEG
London Stock Exchange — FY2024 Earnings Presentation
44 slides from London Stock Exchange's earnings presentation, Feb 27, 2025
Slide 1: Delivering growth, innovation and efficiency: 2024 full year results
Delivering growth, innovation and efficiency 2024 full year results
Slide 2: Strong growth, accelerating product innovation and margin expansion
Strong growth, accelerating product innovation and margin expansion +8.4% +80bps £2.2bn £1.7bn +7.7% organic Adj. EBITDA margin Equity Free Dividends and (excl. FX impacts) Cash Flow buybacks2 Total Income (excl. recoveries)1 All-weather model in Building a scalable Step-change in cash Continuing ou
Slide 3: Delivering growth with operating leverage
Delivering growth with operating leverage Michel-Alain Proch, CFO
Slide 4: Strong income growth in 2024
Strong income growth in 2024 (GBP million) Q1 Q2 Q3 Q4 FY 2024 total income excl. recoveries 2,089 2,115 2,117 2,173 8,494 2023 total income excl. recoveries 2,007 1,983 1,966 2,053 8,009 Reported growth 4.1% 6.7% 7.7% 5.8% 6.1% Organic growth1 6.4% 7.8% 8.7% 7.7% 7.7% 1. Organic, constant currency
Slide 5: Delivering broad-based growth across all divisions
Delivering broad-based growth across all divisions Growth Organic growth1 (GBP million) 2024 2023 vs 2023 vs 2023 Data & Analytics 4,010 3,931 2.0% 4.5% FTSE Russell 918 844 8.8% 10.9% Risk Intelligence 531 492 7.9% 11.3% Capital Markets 1,828 1,546 18.2% 17.8% Post Trade 1,194 1,167 2.3% 2.4% Total
Slide 6: Data & Analytics - product investments driving 4.5% organic growth
Data & Analytics - product investments driving 4.5% organic growth 6.2% 4.9% £m 2.9% 2025 Equity free cash flow 4,010 3,931 1 2023 Workflows Data & Feeds Analytics M&A FX 2024 Workflows Data & Feeds Analytics Product enhancements including Continued expansion of our content and Ongoing demand for Yi
Slide 7: Driving performance in FTSE Russell and Risk Intelligence
Driving performance in FTSE Russell and Risk Intelligence 11.9% 11.3% 10.3% £m £m 2025 Equity free cash flow 918 531 844 492 1 2023 Subscription Asset-based FX 2024 2023 Organic M&A FX 2024 FTSE Russell Risk Intelligence Continued strong demand for flagship equity indices and Strong regulatory and r
Slide 8: Retention, sales and price driving ASV growth
Retention, sales and price driving ASV growth ASV growth rate Impact of Ukraine / Russia conflict 2024 6.7% 6.2% 6.3% 6.4% 6.3% 6.0% 6.0% 4.6% 3.0% Mar-21 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Broad-based acceleration Offset by known headwinds in 2024 Long-run improvement driven by better retention Credit
Slide 9: Capital Markets: all businesses contributing to growth
Capital Markets: all businesses contributing to growth 23.1% 6.1% £m 4.6% 1,828 1,546 1 2023 Equities Fixed Income, Foreign Exchange M&A FX 2024 Derivatives & Other Equities Fixed Income Foreign Exchange Market conditions improving; share gains Record ADV2 at Tradeweb; Market volatility driving grea
Slide 10: Post Trade: good performance despite known headwinds
Post Trade: good performance despite known headwinds 10.8% (6.3%) 4.9% (6.3%) £m 2025 Equity free cash flow 1,194 1,167 1 2023 OTC Derivatives Securities & Non-cash Net treasury M&A FX 2024 Reporting collateral income OTC Derivatives Securities & Reporting Net treasury income Higher clearing volumes
Slide 11: Strong EBITDA growth flowing through to AEPS
Strong EBITDA growth flowing through to AEPS Growth % vs 2023 (GBP million) 2024 2023 Reported Constant ccy Total income excl. recoveries 8,494 8,009 6.1% 8.4% Gross profit 7,685 7,236 6.2% 8.4% Adjusted EBITDA 4,148 3,777 9.8% 9.6% Adjusted EBITDA margin 48.8% 47.2% Adjusted depreciation, amortisat
Slide 12: Improving cost control
Improving cost control Growth % vs 2023 (GBP million) 2024 2023 Reported Constant ccy Organic1 Cost of sales 1,173 1,143 2.6% 5.3% 4.9% Staff costs 2,226 2,085 6.8% 9.3% 8.1% Third-party services 396 404 (2.0%) 0.6% 0.6% Total resource cost 2,622 2,489 5.3% 7.9% 6.9% As a % of total income excl. rec
Slide 13: Delivering margin expansion
Delivering margin expansion +40bps Other costs +40bps +30bps +10bps Resource costs +30bps +10bps +40bps +50bps -10bps -10bps +70bps 48.8% underlying operating leverage 48.4% 47.6% 47.2% 3 2023 FX-related Rebased 2023 Staff costs Third-party IT costs Other Growth in 2024 FX-related 2024 EBITDA items1
Slide 14: Net finance expense impacted by higher interest rates
Net finance expense impacted by higher interest rates (GBP million) 2024 2023 Interest expense on bank and other borrowings, 319 245 net of derivative interest Bank deposit and other interest income, and other gains (169) (125) Net lease interest expense 19 16 Interest differential and foreign excha
Slide 15: Tax rate impacted by increase to the UK corporate rate
Tax rate impacted by increase to the UK corporate rate (GBP million) 2024 2023 Reported income taxes 337 247 Reversal in income tax on amortisation of intangibles arising from acquisition 367 306 Rate change on non-underlying attributes1 (44) 44 Transactions, integration and similar costs 50 19 Othe
Slide 16: Adjusted earnings per share
Adjusted earnings per share +10.1% CAGR +12.2% 363.5p 317.8p 323.9p 272.4p 20211 2022 2023 2024 1. Reported AEPS, as re-presented in the 2022 Annual Report LSEG | 16
Slide 17: Non-underlying items: Refinitiv integration costs tracking as expected
Non-underlying items: Refinitiv integration costs tracking as expected (GBP million) 2024 2023 Adjusted operating profit 3,165 2,862 Transaction costs credit / (costs) 15 (85) Integration, separation & restructuring costs (226) (247) Profit on disposal & remeasurement gains 8 69 Depreciation, amorti
Slide 18: Highly cash generative business model: strong free cash flow
Highly cash generative business model: strong free cash flow (GBP million) 2024 2023 Variance Reported EBITDA 3,945 3,514 431 Non-cash / non-operating P&L items 64 70 (6) Change in working capital (38) (361) 323 Operating cash flow 3,971 3,223 748 Net interest on debt and commercial paper1 (180) (93
Slide 19: Deploying our strong equity free cash flow for growth and shareholder returns
Deploying our strong equity free cash flow for growth and shareholder returns £2,449m £2,184m Dividends - £642m1 Final dividend of 89.0p, up 12.2% Dec 2023 Acquisitions & Disposals - £807m Dec 2024 leverage: • Acquisitions - £1,192m: Closed ICD leverage: 1.8x and r8fin, increased LCH stake 1.7x • Di
Slide 20: Capital allocation in 2025
Capital allocation in 2025 2025 Equity free cash flow At least £2.4 billion Leverage range 1.5 – 2.5x1 Dividends Share buyback Selective M&A ~ £700m £500m in H1 Opportunity To be revisited in July 2025 dependent LSEG | 20
Slide 21: 2025 guidance: continued growth and improving profitability
2025 guidance: continued growth and improving profitability EBITDA Equity free Revenue Capex2 Margin cash flow At least 6.5-7.5% 50-100bps c.10% £2.4 billion organic constant currency improvement in constant of total income income growth1 currency EBITDA margin excluding recoveries including an acce
Slide 22: Medium-term guidance: accelerating growth, good cash conversion
Medium-term guidance: accelerating growth, good cash conversion EBITDA Equity free Revenue Capex2 Margin cash flow Mid-to-high single-digit Underlying margin to c.10% of income Cumulative free cash flow organic growth annually, increase over time. in 2025 to exceed adjusted profit accelerating after
Slide 23: Driving growth; delivering on our strategy
Driving growth; delivering on our strategy David Schwimmer, CEO
Slide 24: Our all-weather business model in action
Our all-weather business model in action LSEG organic Fed Funds World Real GDP FTSE World Index Global Equity Issuance Global Debt Issuance growth (LHS, %) Rate (LHS, %) growth (LHS, %) growth (RHS,%) growth (RHS, %) growth (RHS, %) +10% +80% 7.7% 6.7% 6.3% 5.8% 5.0% -4% -80% 2020 2021 2022 2023 202
Slide 25: Our strategy for sustained growth
3. Integrated solutions 4. Trusted to 2. Open help customers ecosystem meet business critical needs Our strategy for sustained growth 1. Best in class data machine 5. Deep partnerships and distribution with customers Global, multi-asset class, across the trade lifecycle LSEG | 25
Slide 26: Demonstrating the power of global, multi-asset class and full trade lifecycle
Demonstrating the power of global, multi-asset class and full trade lifecycle Trade Lifecycle Serving customers pre/at/post trade Capital Formation & Issuance Pre-Trade & Liquidity Discovery Trade Execution Post-Trade & Capital Optimisation Public Clearing Investment Price & Trade Execution Settleme
Slide 27: Increasingly commercialising our powerful brand identity
Demonstrating the power of global, multi-asset class and full trade lifecycle Increasingly commercialising our Brand awareness Purchase intent powerful brand identity 44% 68% 29% 36% 2023 2024 2023 2024 LSEG | 27
Slide 28: Sales pipeline and sales metrics
Demonstrating the power of global, multi-asset class and full trade lifecycle Sales Sales Deal Win pipeline cycle size rate Increasing Stable Stable Stable Continued good Average time to close Average deal size Maintained LSEG growth in H2 in-line with 2023 slightly higher in H2 win rate vs. 2023 LS
Slide 29: 1. Best in class data machine and distribution
1. Best in class data machine and distribution Realising benefits Partnering to expand Embracing efficiency of multi-year investment our data offering through innovation Compelling fixed income data: AI-powered tools driving Debt Corporate Actions: 27 events on Extending news leadership 10% 1 millio
Slide 30: Best in class data machine: significant cloud expansion
1. Best in class data machine and distribution – significant cloud expansion Making data available wherever customers Innovating and expanding our multi-cloud want to consume it offering to drive future growth Continuing demand for existing approaches Data as a Expanding on Service (DaaS) Microsoft
Slide 31: 2. Creating powerful and unique opportunities through our open ecosystem
2. Creating powerful and unique opportunities through our open ecosystem FMX Third-party Analytics Open Directory Post Trade Analytics, D&A Workflows, D&A • Single API for all LSEG’s Analytics • Open messaging function with • Launch of SOFR futures clearing content live in 2024; 300+ models embedded
Slide 32: 3. Integrating our products creates compelling customer solutions
3. Integrating our products creates compelling customer solutions Order execution & mgt. Integrating TORA’s Integrating and innovating capabilities Actionable Leading news a powerful customer proposition insights research Adding Dow Jones All LSEG research & content insights in one place • >500 upgr
Slide 33: 3. Integrating our products: single market surveillance solution
3. Integrating our products creates compelling customer solutions Combining our existing services into a single market surveillance solution Capital Markets Data & Analytics Post Trade Relevant trade data and market Extensive public market tick data, Regulatory MiFIR surveillance tools reference dat
Slide 34: 4. Helping customers with their business-critical needs
4. Helping customers with their business-critical needs Working with customers to solve emerging demands Data Risk Artificial Post & Analytics Intelligence Trading Intelligence Trade Leveraging our Innovative SEPA2 Distinctive, award Simple and Trade compression infrastructure for solution for insta
Slide 35: 5. Realising the power of partnership – Tradeweb
5. Realising the power of partnership – Tradeweb Supporting adoption of electronic trading across fixed income markets Tradeweb increasing share through innovation • Interest rate swaps +3.9%1 • US Investment grade credit +2.6%2 • FTSE Russell • Data & Analytics • US High Yield credit +0.9%2 • Capit
Slide 36: 5. Realising the power of partnership – Post Trade Solutions
5. Realising the power of partnership – Post Trade Solutions Global OTC derivatives Value of contracts outstanding Partnering to build industry solutions for uncleared products Pressing customer need for solutions to acute regulatory and capital-driven pressures • Opportunity similar in size to clea
Slide 37: 5. Realising the power of partnership - Microsoft
CORPORATE 5. Realising the power of partnership - Microsoft Delivered in 2024 Expected in 2025 Workspace: First Data as a Service: Financial Data as a Service: Analytics: Modelling generative AI ESG data Analytics API Fundamental data as a Service capabilities H1 H2 H2 H1 H2 H2 Workspace: Workspace:
Slide 38: Delivering on our strategy for growth
Delivering on our strategy for growth Strong Disciplined financial capital performance allocation Transforming Deepening our business customer relationships LSEG | 38
Slide 39: Q&A
Q&A LSEG
Slide 40: Appendix
Appendix LSEG
Slide 41: 2024 condensed consolidated income statement
2024 condensed consolidated income statement Transaction, Non-underlying Depreciation, 2024 integration, Profit on Non-underlying loss attributable amortisation Non-underlying 2024 (GBP million) separation and disposal of and impairment finance tax2 to non- adjusted P&L P&L restructuring business of
Slide 42: Net debt profile – by currency
Net debt profile – by currency (GBP million) Total USD EUR GBP Other 2025 Bonds 415 415 2026 Bonds 1,391 1,391 2027 Bonds 1,383 476 907 2028 Bonds 1,211 797 414 2029 Bonds 413 165 248 2030 Bonds 1,104 608 496 2031 Bonds 795 795 2033 Bonds 410 410 2034 Bonds 587 587 2041 Bonds 591 591 Bonds 8,300 5,4
Slide 43: Net debt profile – fixed vs floating
Net debt profile – fixed vs floating (GBP million) Total Fixed rate Floating rate N/A 2025 Bonds 415 415 2026 Bonds 1,391 798 593 2027 Bonds 1,383 1,383 2028 Bonds 1,211 1,211 2029 Bonds 413 413 2030 Bonds 1,104 496 608 2031 Bonds 795 795 2033 Bonds 410 410 2034 Bonds 587 587 2041 Bonds 591 591 Bond
Slide 44: Contacts and further information
Contacts and further information Peregrine Riviere Group Head of Investor Relations Tel: +44 (0)7 977 379 063 | Email: peregrine.riviere@lseg.com Chris Turner Investor Relations Senior Director Tel: +44 (0)7 769 931 614 | Email: chris.turner@lseg.com Neha Kasabia Investor Relations Director Tel: +44
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