Lion Group Holding Ltd. · NASDAQ:LGHL
Lion — Investor Presentation (August 2020)
27 slides from Lion's investor presentation, August 2020
Slide 1: Investor Presentation
Investor Presentation August 2020 1
Slide 2: Disclaimer
• Disclaimer We have prepared this document solely for informational purposes. You should not definitively rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever, with respect to any proposed transaction or otherwise. We have prepared this doc
Slide 3: Contents
• Contents I. Company Overview II. Investment Highlights III. Growth Drivers IV. Management Team V. Financials and Metrics 3
Slide 4: Company Overview: Market Profile
• Company Overview: Market Profile Lion is the operator of an all-in-one trading platform that offers a wide spectrum of products and services with a focus on Chinese investors. Ticker Exchange Headquarters Founded LGHL Nasdaq Hong Kong 2015 SPAC business combination closed on June 16, 2020 Business
Slide 5: Company Overview: Products and Services
• Company Overview: Products and Services We offer our customers a wide array of services, including CFD trading, insurance brokerage, futures brokerage, securities brokerage, and asset management. Through our platform, our customers can access a full suite of financial products, including: Callable
Slide 6: Investment Highlights
• Investment Highlights Leading market position targeting high-volume, Asian retail and institutional markets for Contracts for Difference (CFD) and other brokerage services. Diversified product portfolio to fulfill customer demands for trading in global financial markets. Provides superior user exp
Slide 7: Great Growth Potential in Contract For Difference
• Great Growth Potential in Contract For Difference Fee income from derivatives brokerage activities is expected to reach approximately HKD8.4 billion ($1.1 billion) by 2023 Driven by the volatility in underlying assets, limitations in Mainland China’s capital markets, increase in wealthy investors,
Slide 8: Great Growth Potential in Contract For Difference
• Great Growth Potential in Contract For Difference Estimated market size of swaps in terms of accumulated addition of notional principal in China reached approximately $73 billion in 2019 8 Source: SAC, iResearch
Slide 9: Growth Potential from China-Hong Kong Stock Connect
• Growth Potential from China-Hong Kong Stock Connect Trading volume of stock connect has maintained steady growth since 2017 and during Q1 2020 The increased stock connect trading activities in Q1 2020 mainly result from: Foreign investors picking A Mainland China investors Portfolio restructuring
Slide 10: Growth Potential from Focus on Chinese Investors
• Growth Potential from Focus on Chinese Investors …both domestically …and overseas Total Individual Investable Financial Assets in China Total Investable Financial Assets Held by Overseas Expected to Reach $35.3tn by 2023 Chinese Expected to Reach $9.5tn by 2023 Source: Credit Suisse, Overseas Comm
Slide 11: Strategic Partnerships with Industry Leaders Further Drive Growth
• Strategic Partnerships with Industry Leaders Further Drive Growth Securities Brokerage Services Segment CICC GTJA CFD Trading Service GH INTL Segment Financial FCStone Insurance Brokerage AIA AXA BOC Life Service Segments Mass Prudential Manulife Mutual 11
Slide 12: CICC and GTJA: Leading Players in OTC Derivative Market
• CICC and GTJA: Leading Players in OTC Derivative Market CICC GTJA • 43k institutional clients by the y/e 2019, representing a 22% YoY growth Total Accounts • 13.54m individual clients by the y/e 2019, representing a 6.7% YoY growth 2019 Net Profit – RMB4.24 bn, 2019 Net Profit - RMB90.5 bn, Net Pr
Slide 13: Experienced Management Team
• Experienced Management Team Chunning Wang Hua Luo Sze Hau Lee Director & Chief Executive Officer Chief Operating Officer Chief Financial Officer • 15+ years of experience in financial services industry • 13+ years of experience in financial services industry • 13+ years of experience in financial
Slide 14: Experienced Board of Directors
• Experienced Board of Directors Jian Wang Chunning Wang Shih-Chung Chou Zhixiang Zhang Chi Fai Choi Walter Cook Chi-yang Chen Chairman of the Board Director and Director Director Independent Director Independent Director Independent Director • 15+ years of experience in Chief Executive Officer • 20
Slide 15: Disrupted Business Operations in 1H20 due to COVID-19 Pandemic
• 1HY 2020 • Disrupted Business Operations in 1H20 due to COVID-19 Pandemic • Our businesses were negatively affected by border closures and travel restrictions in particular • Cancellations and inability to attend events resulted in limited opportunities for new customer acquisition • The economic
Slide 16: Financial Summary
• Financial Summary Total Revenues Loss/Income Before Income Taxes ($ '000) ($ '000) 18,527 6,568 8,007 6,431 8,281 3,515 2,377 -2,745 2018 2019 1H19 1H20 2018 2019 1H19 1H20 Comprehensive Loss/Income Cash and Cash Equivalents ($ '000) ($ '000) 8,111 6,389 8,292 3,415 2,394 4,005 3,116 -2,796 2018 2
Slide 17: Segment Performance
• Segment Performance Segment Revenues ($ ‘000) CFD Insurance Brokerage 12,844 5,379 4,703 5,126 2,648 1,820 0 639 2018 2019 1H19 1H20 2018 2019 1H19 1H20 Futures and Securities Brokerage Other 2,066 2,216 1,462 819 22 48 617 -877 2018 2019 1H19 1H20 2018 2019 1H19 1H20 17
Slide 18: Financial Profile Snapshot
• Financial Profile Snapshot Unit June 30, 2020 Cash and cash equivalents $ 8,111,409 Short-term borrowings $ 621,101 (i) The shareholders of Class A ordinary shares Total stockholders’ equity $ 9,631,091 and Class B ordinary shares have the same rights, except for voting and conversion rights. Each
Slide 19: Operating Metrics
• Operating Metrics CFD Insurance Brokerage 1,843 2,607 1,908 806 806 269 Revenue-Generating Trading Volume Client Accounts ('000s lots) New Policies Renewed Policies 2018 2019 2018 2019 Futures Brokerage Securities Brokerage 777 912 10,151 82 110 1,226 80 91 Revenue-Generating Contracts Revenue-Gen
Slide 20: Contact Information
• Contact Information Lion Group Holding IR Contact Tel: +852 2820 9011 ICR, LLC William Zima Tel: +1 203 682 8233 ir@liongrouphl.com https://www.liongrouphl.com/ 20
Slide 21: Appendix
21 Q Appendix y v @) LGHL | Nasdaq Listed
Slide 22: Corporate History
• Corporate History Nasdaq Listed on Nasdaq on June 17, 2020 (LGHL) Launched the All-in-One Application 2020 2019 Launched of CFD Business Launched the TRS service Develop Trading Platform into All-in-One Application CIMA HKSFC Obtained CIMA Securities Investment Business License to act as Broker 20
Slide 23: Business Licenses
• Business Licenses CIMA Full Securities Investment Cayman Islands Lion Brokers Limited Business Licenses Monetary Authority Broker Dealer & Market Maker Lion International Securities HKSFC Type 1 and 4 Licenses Group Limited Hong Kong Securities Lion Futures Limited HKSFC Type 2 and 5 Licenses and
Slide 24: Lion's Regulatory Advantage in CFD
• Lion’s Regulatory Advantage in CFD Under the regulatory framework of CIMA, Lion is able to offer more flexible and higher leverage CFD products to clients The Financial Conduct Regulation of Contract Cayman Islands European Securities and Authority of the United for Difference Trading Monetary Aut
Slide 25: Service Illustration: Contract for Difference (CFD)
• Service Illustration: Contract for Difference (CFD) Third party market Gain for Lion: makers I. Commission II. Bid / offer spread III. Difference in interest rates Deal Pass orders to third confirmation party marker makers Deal requests Opposite trades of with leverage Lion’s clients are offset an
Slide 26: Service Illustration: Total Return Swap (TRS)
• Service Illustration: Total Return Swap (TRS) Gain for Lion: Net interest margin ISDA agreements Total return (interest + appreciation) CICC / GTJA Payment of Interest Gains and losses Total return Interest Underlying Lion’s clients assets 26
Slide 27: Thanks for your time!
27 . LGHL Nasdaq Listed Thanks for your time !
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