Stonex Group Inc. · NASDAQ:SNEX
Stonex — INTL FCStone — Investor Presentation (June 2014)
29 slides from Stonex's investor presentation, June 2014
Slide 1: Investor Presentation
INVESTOR PRESENTATION June 2014
Slide 2: Disclaimer
Disclaimer The following presentation should be taken in conjunction with the most recent financial statements and notes thereto as well as the most recent Form 10-Q or 10-K filed with the SEC. This presentation may contain "forward-looking statements" within the meaning of Section 27A of the Securi
Slide 3: We Open Markets.
High touch approach in specialized markets for underserved clients. We Open Markets. 3
Slide 4: Who We Are
Who We Are COMMERCIAL GLOBAL PHYSICAL SECURITIES CLEARING HEDGING PAYMENTS COMMODITIES Revenue ($mm)* $211 (44%) $48 (10%) $76 (16%) $122 (25%) $24 (5%) CLOSEST PEERS High touch risk Highly efficient Market maker for Clearing member of Act as a principal in advisory service with institutio
Slide 5: Our Values
Our Values 1. CLIENTS FIRST – ALWAYS We know that every dollar of revenue starts with a client and will protect that relationship at all costs. We do not trade against or in front of our clients or use client information in an inappropriate manner. 2. INTEGRITY AND HONESTY IN ALL WE DO Reputation an
Slide 6: Our Track Record
Our Track Record Since Financial Crisis (10/1/08) BVPS Up 112%, a 15% CAGR $35.0 BV/Share $30.0 Share Price $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 Dec-08 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Book Value per Share Detail Book Value per Share Indices 250 US $ / share
Slide 7: Trends Driving Our Business
Trends Driving Our Business INDUSTRY/CUSTOMER TREND CHALLENGE Unique regulatory status as broker- Difficult to offer broad solutions dealer, swap dealer, FCM REGULATION due to increased complexity Fully compliant in multiple Significantly increased cost burden jurisdictions Pressure on sub
Slide 8: Investment Rationale
Investment Rationale TRACK VALUE-ADDED GLOBAL FINANCIAL RECORD CUSTOMER MODEL SERVICES FRANCHISE Delivering growth and Singular focus on the clients, Footprint in key growth compounding of book value delivering value-added markets including Asia, solutions and creating long Europe and Latin America
Slide 9: We Operate Globally
We Operate Globally Serving more than 10,000 Clients Globally with 1,100 Professionals Located in 13 Countries 2 EUROPE 11 5 ASIA 17 England NORTH AMERICA Ireland 7 UAE 12 Canada China US Singapore South Korea AFRICA 1 10 SOUTH AMERICA 1 Brazil 1 AUSTRALIA 2 Argentina Paraguay # Number of offices #
Slide 10: Company Timeline
Company Timeline Three Predecessor Firms Combine to Form a Global Leader Agricultural wholesaler Saul International Assets FCStone listed on Stone and Company listed on Nasdaq Nasdaq founded Saul Stone becomes one of FCC acquires Saul Stone; first CME clearing members becomes one of largest US comme
Slide 11: Our Business Segments
INTL: FCStone’ Commodities - Global Payments - Foreign Exchange - Securities Our Business Segments
Slide 12: Our Business Segments: Commercial Hedging
Our Business Segments Commercial Hedging Transactional Revenue Breakdown (TTM) Delivering a high touch, value added service to commercial clients seeking to manage risk Long term quality relationships with clients 9% Unique platform allows access to advice, exchange listed 17% products, OTC an
Slide 13: Our Business Segments: Global Payments
Our Business Segments Global Payments Unique capability to offer a global payments solution to clients in over 130 currencies and markets Value-added execution efficiencies - strong ties to local correspondent banks affords access to best rates Significant investment in technology to reduce co
Slide 14: Our Business Segments: Securities
Our Business Segments Securities Net Operating Revenue Breakdown (TTM) Leading US market maker on pink sheets to major US brokerages and select US institutions for non-US listed equities 15% Specialize in U.S. OTC trading of ~800 43% household-name foreign equities 18% We provide liquidity and
Slide 15: Our Business Segments: Clearing & Execution Services
Our Business Segments Clearing & Execution Services Net Operating Revenue Breakdown (TTM) Competitive and efficient clearing and execution of exchange-traded futures and options for traders and institutions Provide services for institutional and 40% professional trader market segments 60% Offe
Slide 16: Our Business Segments: Physical Commodities
Our Business Segments Physical Commodities Adjusted Operating Revenue Breakdown (TTM) Full range of trading and hedging capabilities, including OTC products, to select producers, consumers, and investors Act as principal, commit own capital to buy/sell on spot and forward basis 46% 54% Provide
Slide 17: Growth Strategy
Growth Strategy Drive organic client acquisition - filling mid-market void Penetrate existing clients with additional products and services Accelerate international growth with emphasis on Asia, Europe and Latin America Continue to broaden and diversify our product set Selectively acquire assets tha
Slide 18: Financials
INTL. FCStone’ Commodities - Global Payments - Foreign Exchange - Securities Financials
Slide 19: Financial Drivers
Financial Drivers Client-centric, high touch, value added approach results in long term relationships and high margins Business and geographic diversity limits downside performance risk Highly variable cost structure protects bottom line through market cycles Centralized and disciplined process for
Slide 20: Attractive Financial Profile
Attractive Financial Profile Adjusted Operating Revenue ($mm) Adjusted Net Income From Continuing Operations1 ($mm) 30.0 27.2 600.0 468.5 477.2 25.0 500.0 452.0 19.6 394.9 18.8 20.0 17.0 400.0 13.8 261.0 15.0 11.8 300.0 10.0 200.0 89.5 5.0 100.0 0.0 0.0 2009 2010 2011 2012 2013 TTM 2009 2010 2011 20
Slide 21: Revenue Analysis
Revenue Analysis Adjusted Operating Revenue by Product Source (YTD) Adjusted Operating Revenue by Geography (Fiscal 2013) Physical Other foreign, Interest Trading, Asia, 4.3% 1.6% Income,1.4% 1.7% Management & South America, Consulting 11.0% Fees, 9.1% OTC, Market Europe, 14.0% United States, Commis
Slide 22: Increase in Short Term Interest Rates Can Drive Earnings
Average Customer Segregated Equity Increase in Short Term Interest Rates Can Drive Earnings $2,000 $1,800 $1,600 $1,400 $1,200 Millions $1,000 $800 $600 $400 $200 $0 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Average customer segregated equity - C
Slide 23: Balance Sheet Summary
Balance Sheet Summary Consolidated Balance Sheet, March 31, 2014 (Numbers in millions) Assets Liabilities and Stockholders' Equity Cash and cash equivalents $ 169.2 Payables to customers 1 2 $ 2,268.0 Cash, securities and other assets segregated under federal and Payable to broker-dealers, clearing
Slide 24: Low Leverage on Long-Term Capital
Low Leverage on Long-Term Capital $400 385 384 $350 $300 323 315 $250 $200 218 $150 $100 $50 61 $0 End of FY2012 End of FY2013 Total Bank Facilities Outstanding Borrowings Long Term Capital 24
Slide 25: Appendix
INTL.- Festone’ Appendix
Slide 26: Adjusted Financial Information
Adjusted Financial Information Reconciliation to Relevant GAAP Measures Our Business Segments (Physical Commodities), refer to slide 16 QUARTERLY (in millions) Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 Q2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Operating revenues (non-GAAP) reconciliatio
Slide 27: Adjusted Financial Information
Adjusted Financial Information Reconciliation to Relevant GAAP Measures Attractive Financial Profile, refer to slide 20 (in millions) FY2009 FY2010 FY2011 FY2012 FY2013 TTM Operating revenues (non-GAAP) reconciliation: Operating revenues $ 89.7 $ 258.5 $ 399.0 $ 448.1 $ 468.2 $ 477.0 Gross marked-to
Slide 28: Transaction Volume Summary
Transaction Volume Summary Three Months Ended Volumes and Other Data: Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Exchange-traded volume (contracts, 000's) 24,750.8 25,114.9 26,985.2 23,915.6 23,874.6 24,968.5 OTC volume (contracts, 000's) 267.0 318.4 347.7 315.9 285.5 346.5 Global payments (# o
Slide 29: Investor Presentation
INVESTOR PRESENTATION June 2014