Ig Group Holdings Plc · LSE:IGG
Ig — Merger or Acquisition (2026)
32 slides from Ig's merger presentation, 2026
Slide 1: Establishing IG Group as a Leader in Prediction Markets
ESTABLISHING IG GROUP AS A LEADER IN PREDICTION MARKETS ACQUISITION OF UNDERDOG – TRANSFORMING IG'S FUTURE
Slide 2: Underdog: Driving a Step-Change in IG's Growth Profile
UNDERDOG DRIVING A STEP - CHANGE IN IG’S GROWTH PROFILE 1 Entering a high - 2 An expanded, 3 A valuable, integrated 4 Structured for 5 A strong growth product complementary licence stack and disciplined value long -term adjacency customer base infrastructure creation return profile US prediction mar
Slide 3: A Proven, Fast-Growing, Highly Scalable Platform
UNDERDOG A PROVEN, FAST - GROWING, HIGHLY SCALABLE PLATFORM $466M #3 position >950K 11M+ LTM Jun 2026 net in US prediction LTM Jun 2026 total registered revenue; 21% y/y 1 2 MAU 3 ; 39% y/y users markets by volume 441 c. 5M+ 12 MONTHS 5M >60% >60% Y/Y deposited marketing social media of MAU aged und
Slide 4: With a Large US Customer Base Acquired Efficiently
WITH A LARGE US CUSTOMER BASE ACQUIRED EFFICIENTLY Cumulative deposited customers Active customers (transacting) Year -end cumulative deposited customers Annual active customers 3.2M 4.9M 2.2M 3.1M 1.3M 1.6M 594K 526K 14K 151K 14K 141K 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 0 4
Slide 5: Prediction Markets Transform Underdog's Opportunity
PREDICTION MARKETS TRANSFORM UNDERDOG’S OPPORTUNITY Leading daily fantasy sports player in the US with a step -change growth opportunity through prediction markets THE FOUNDATION THE POTENTIAL THE PRODUCT Daily fantasy sports powered Entry to larg e, fast -growing prediction One platform, daily fant
Slide 6: A Step-Change in Growth Already Underway
A STEP - CHANGE IN GROWTH ALREADY UNDERWAY SEPT 2025 NOV 2025 MAR 2026 APR 2026 JUL 2026 SEPT 2026 LIMITED EXPANDED TO 30 BUILD OUT OF LAUNCH OF LAUNCH OF THE FULL EXCHANGE PREDICTION STATES WITH THE UNDERDOG BROKERAGE UNDERDOG OFFERING AND MARKETS LAUNCH PARLAYS PROPRIETARY PROPRIETARY INTERNALISAT
Slide 7: Prediction Markets Are Growing Rapidly – Sport Is the Key Driver
PREDICTION MARKETS ARE GROWING RAPIDLY – SPORT IS THE KEY DRIVER Kalshi prediction markets weekly notional volume 1 SPORTS NON - SPORTS $12B $10B NOTIONAL VOLUME $8B $6B $4B $2B SEP 24 OCT 24 NOV 24 DEC 24 JAN 25 FEB 25 MAR 25 APR 25 MAY 25 JUN 25 JUL 25 AUG 25 SEP 25 OCT 25 NOV 25 DEC 25 JAN 26 FEB
Slide 8: Underdog Is Built for Sport
SPORT DOMINATES PREDICTION MARKETS UNDERDOG IS BUILT FOR SPORT SPORTSBOOKS TRADING PLATFORMS UNIQUELY POSITIONED TO WIN Deep sports expertise Product innov ation focus Large, sports -first customer base Fast, real -time, skill -adjacent risk -taking Zero -friction migration – wallets, KYC and brand
Slide 9: The Best Sports Experience
THE BEST SPORTS EXPERIENCE 0 9
Slide 10: A Rapid Path to Category Expansion Beyond Sports
A RAPID PATH TO CATEGORY 58% OF UNDERDOG CUSTOMERS HAVE TRADED INDIVIDUAL STOCKS EXPANSION 46% OF UNDERDOG CUSTOMERS HAVE TRADED CRYPTO PREVIOUSLY BEYOND SPORTS 42% OF UNDERDOG CUSTOMERS SAID THEY LIKE TO FUND THEIR UNDERDOG WALLETS WITH CRYPTO 10
Slide 11: A Proven, Founder-Led Management Team
A PROVEN, FOUNDER - LED MANAGEMENT TEAM A founder -led team with a track record of product excellence and scaling sports entertainment and fintech businesses BRANDON WESTON JAKE STAKENBORG JOSSEY WILLIAMS Co -Founder & CPO CTO Chief Strategy Officer Early team at DRAFT Founded Eager Labs Former COO
Slide 12: A Strong Fit with IG's Strategy with Compelling Combined Opportunities
A STRONG FIT WITH IG’S STRATEGY WITH COMPELLING COMBINED OPPORTUNITIES PRODUCT CULTURE EFFICIENCY Closes a gap in high -growth, A shared obsession with customers Highly scalable platform adjacent category and product Capital synergies from a shared STRATEGIC PRIORITIES ALIGNED WITH IG’S Broadens app
Slide 13: Underdog Materially Broadens IG's TAM and Growth Potential
UNDERDOG MATERIALLY BROADENS IG’S TAM AND GROWTH POTENTIAL TARGET ADDRESSABLE MARKET BY REVENUE (TAM) IG PENETRATION OTC derivatives Futures & options Stock trading Crypto Prediction markets Pro forma TAM HIGH & investments >£8bn IG >£18bn >£57bn (AVERAGE REVENUE PER USER) >£62bn MEDIUM <10% ARPU >£
Slide 14: Underdog Transforms IG's Scale and Reach in the US
UNDERDOG TRANSFORMS IG’S SCALE AND REACH IN THE US Adds a fast -growing new product vertical and broadens IG’s demographic Doubles IG’s US revenue 1 Broadens IG’s demographic (% of average MAU 3) Standalone: US: 22% (£248m) Pro forma: US: 40% (£582m) IG TODAY UNDERDOG US US PRO FORMA 61% £1,123M £1,
Slide 15: Transaction Structure – Material Contingent Consideration
TRANSACTION STRUCTURE – MATERIAL CONTINGENT CONSIDERATION Midpoint of earnout and Maximum payment on MIP strong outperformance Upfront Upfront • Enterprise value for 100% of Underdog paid at consideration consideration closing Total consideration $1.1BN $1.1BN Paid to Underdog • Payable based Underd
Slide 16: Transaction Structure – Sources of Funds
TRANSACTION STRUCTURE – SOURCES OF FUNDS • Approximately 60 % settled from the • Approximately 40% cash consideration Upfront issue of new IG ordinary shares funded initially via a bridge facility consideration – number of shares based on 30 -day $1.1BN VWAP prior to signing of the merger agreement
Slide 17: Transaction Structure – Allocation, Lock-ups and Closing
TRANSACTION STRUCTURE – ALLOCATION, LOCK - UPS AND CLOSING INITIAL STOCK- INITIAL STOCK- CLOSING FOUNDERS OTHER SHAREHOLDERS • Underdog's founders receive, in • Certain institutional shareholders • Closing expected in late 2026 or aggregate, c.1.5% of IG's enlarged receive, in aggregate, c.3% of IG'
Slide 18: Strategically and Financially Compelling Acquisition
STRATEGICALLY AND FINANCIALLY COMPELLING ACQUISITION Delivers the vision set out in IG’s strategic review, STRONG ATTRACTIVE LOW EXECUTION positioning the Group at the centre of a structural STRATEGIC FIT RETURN PROFILE RISK convergence across trading, • Category leadership in a • Value accretive •
Slide 19: Underdog Catalyses IG's Growth
OUTLOOK UNDERDOG CATALYSES IG’S GROWTH The Acquisition is expected to accelerate IG's standalone CATALYSES PRO FORMA BALANCE SHEET revenue, EBITDA and adjusted earnings per share growth ORGANIC REVENUE EARNINGS AND CAPITAL over the medium term, and to GROWTH GUIDANCE ALLOCATION broaden the Group's a
Slide 20: Underdog: Driving a Step-Change in IG's Growth Profile
UNDERDOG DRIVING A STEP - CHANGE IN IG’S GROWTH PROFILE 1 Entering a high - 2 An expanded, 3 A valuable, integrated 4 Structured for 5 A strong growth product complementary licence stack and disciplined value long -term adjacency customer base market infrastructure creation return profile US predict
Slide 21: H1 2026 Highlights
H1 2026 HIGHLIGHTS 21 21
Slide 22: Our Strategy Is Delivering – Underdog Accelerates It
OUR STRATEGY IS DELIVERING – UNDERDOG ACCELERATES IT STRONG NEW CUSTOMER BROAD-BASED REVENUE ACQUISITION Driving compounding active customer growth +74% GROWTH Enhanced product velocity, disciplined +17% organic first trades organic total revenue – up +13% y/y organically in H1 2026 y/y – marketing
Slide 23: Q&A Acquisition of Underdog
Q&A ACQUISITION OF UNDERDOG 23
Slide 24: Appendix
APPENDIX 24 24
Slide 25: What Is Daily Fantasy Sports?
DAILY FANTASY SPORTS THE ENGINE THAT POWERED UNDERDOG’S GROWTH WHAT IS DAILY FANTASY SPORTS? 2006 US law 1 exempted Drafts DFS: Pick’em DFS: Players pay an entry DFS from online gambling draft a team of athletes pick higher/lower on fee in both formats – restrictions as a game within a fixed budget;
Slide 26: Underdog Was Built in DFS, Now Growing Fast in Prediction Markets
UNDERDOG WAS BUILT IN DFS NOW GROWING FAST IN PREDICTION MARKETS DAILY FANTASY SPORTS PREDICTION MARKETS ONLINE SPORTS BETTING Underdog’s heritage Underdog’s present and future Underdog not present FORMAT Skill contests on real Derivatives on future Bets on sport outcomes athlete stats real -world e
Slide 27: One Platform Spanning DFS and Prediction Markets
ONE PLATFORM SPANNING DFS AND PREDICTION MARKETS DFS PREDICTION MARKETS Relatively narrow product offering A regulated venue enabling a full range of sports -outcome contracts alongside real -world events DRAFTS COMBOS SINGLES PARLAYS COMBOS PICK’EM CONTESTS (DFS + prediction markets) • Players buil
Slide 28: From Renting Access to Full Vertical Integration
FROM RENTING ACCESS TO FULL VERTICAL INTEGRATION Underdog moves from routing trades through a third -party exchange to owning the market infrastructure – capturing economics at every layer as one of only three full -stack, sports -focused operators LEGACY NOW LIVE– UNDERDOG OWNS THE ENTIRE STACK FUL
Slide 29: A Valuable, Integrated Licence Stack Unlocks the Next Phase of Growth
A VALUABLE, INTEGRATED LICENCE STACK UNLOCKS THE NEXT PHASE OF GROWTH UNDERDOG TODAY UNDERDOG’S FUTURE Delivering strong growth, Prediction markets transform the opportunity despite a relatively restrictive DFS format DFS FCM THE BROKERAGE DCM THE EXCHANGE DCO THE CLEARING HOUSE Takes customer order
Slide 30: Evolution of Underdog's Revenue Model
EVOLUTION OF UNDERDOG’S REVENUE MODEL DAILY FANTASY SPORTS (DFS) PREDICTION MARKETS UNDERDOG’S HANDLE IS SHIFTING REVENUE MODEL 1 BUSINESS MODEL FAST TO PREDICTION MARKETS DFS / LEGACY Formula DFS Formula PM Description Description PREDICTION MARKETS reference line item reference line item A Handle
Slide 31: Regulatory Outlook
REGULATORY OUTLOOK A federal framework for events contracts opens a large, fast -growing opportunity, anchored by a leading daily fantasy sports franchise, with the performance -based consideration underpinning valuation CURRENT LEGAL LANDSCAPE VALUE PROTECTED BY STRUCTURE • Exchange -traded sports
Slide 32: Underdog Historical P&L
UNDERDOG HISTORICAL P&L 12 MONTHS ENDING 31 DECEMBER ($M UNLESS STATED) H1 2026 2025 2024 2023 US GAAP Net revenue 250.1 441.2 271.2 151.4 EBITDA 59.6 (52.8) (60.3) (55.5) Average monthly active users (‘000) 952.5 835.7 577.8 320.2 Cumulative deposit customers (‘000) 5,500 4,900 3,100 1,600 32