Ig Group Holdings Plc · LSE:IGG
Ig — H1 2025 Earnings Presentation
38 slides from Ig's earnings presentation, January 2025
Slide 1: Results presentation, half year ended 30 November 2024
Results presentation Half year ended 30 November 2024
Slide 2: Agenda
1. Highlights 2. Financial performance Agenda 3. Initial progress 4. Q&A
Slide 3: Highlights
Highlights IG Group
Slide 4: Making progress against our priorities
Making progress against our priorities H1 total revenue +11% reflecting more supportive market conditions Initial steps taken to enhance product, culture and efficiency Taking decisive action to exit initiatives not delivering acceptable returns Deploying our strong cash flow for shareholder returns
Slide 5: H1 results reflected more supportive market conditions
H1 results reflected more supportive market conditions Total revenue and adjusted PBT (£m) Total revenue £522m 1 11% Adjusted profit before tax £267m_ tf 30% Adjusted basic EPS H1FY22 H2FY22 H1FY23 H2FY23 HIFY24 H2FY24 H1FY25 55.3p t 42% Weighted average number of shares (m) and EPS (p) Dividend per
Slide 6: Work to do to enhance structural growth
Work to do to enhance structural growth " Group active clients in H1 FY25 Group active clients (‘000) broadly flat on prior year 329 = Within this, OTC derivatives active $12 301 296 299 clients down 3% = Large and growing addressable markets present a significant opportunity for growth H1FY22 H2FY2
Slide 7: Financial performance
IG Group Financial performance
Slide 8: First half performance
First half performance Adjusted basis (£m) H1 FY25 H1FY24 Change . . Net trading revenue 451.7 402.4 12% * Trading revenue benefited from more supportive market conditions Net interest income 70.8 70.2 1% Total revenue 522.5 472.6 11% * Net interest income stable with lower Betting duty and other op
Slide 9: Top line driven by higher revenue per client
Top line driven by higher revenue per client Net trading revenue (£m) H1 FY25 H1FY24 Change . . oy aes OTC derivatives 360.4 3277 10% group net trading lent a up 1" criven ey oe igher revenue per client across all produc Exchange traded derivatives 78.0 63.6 23% lines reflecting ere supportive aarke
Slide 10: New divisional reporting structure
New divisional reporting structure Net trading revenue (£m) H1 FY25 H1FY24 Change UK and Ireland 138.3 125.0 11% APAC and Middle East 131.4 123.8 6% United States 77.3 65.6 18% Europe 63.1 53.5 18% Institutional and Emerging Markets 41.6 34.6 20% Total Group 451.7 402.4 12% Active clients (000) H1 F
Slide 11: Costs well controlled
Costs well controlled Adjusted operating costs (£m)' H1 FY25 H1FY24 Change Fixed remuneration 95.4 100.2 (5%) Advertising and marketing 42.2 43.8 (4%) Revenue related costs 23.0 30.6 (25%) IT, structural market data and comms 28.6 23.8 20% Depreciation and amortisation 16.1 17.7 (9%) Other costs 39.
Slide 12: Group capital generation remains strong
Group capital generation remains strong = Share buyback programme extended to £1,026 at . m £996m Fy £200 million with the announcement of a further £50 million to be completed in H2 FY25 = Headroom over minimum Group regulatory capital requirement of £658 million as of end H1 FY285, including a ded
Slide 13: A reminder of our capital allocation framework
A reminder of our capital allocation framework 1) Regulatory capital requirements 2) Organic investments 3) Commitment to citizenship 4) Regular distributions 5) Inorganic investment 6) Additional distributions Hold an appropriate level of regulatory capital and liquidity. Pro forma headroom of £424
Slide 14: Initial progress
Initial progress IG Group
Slide 15: A reminder of our initial priorities
A reminder of our initial priorities = Get closer to our clients = Increase ownership and = Seek opportunities to and deliver products and accountability reduce cost to serve experiences that meet . - their needs = Move faster to close = Drive scalability initiatives not delivering a = Broaden custo
Slide 16: Current product assessment
Current product assessment oTc derivatives Exchange traded derivatives Stock trading and investments IG Group Geo ®@ O No current offering —»> e@ Fully developed offering! EMEA UK EU Australia Singapore Japan USA? Institutional Overall GOO ® With potential to optimise existing offering within curren
Slide 17: Product velocity has some initial momentum
Product velocity has some initial momentum OTC derivatives Exchange traded derivatives Stock trading & investments v Added content and v Launched US options and v Enhanced UK proposition features customers want futures in the UK (IG Invest) Y Closing gaps to v Added fixed income v New propositions b
Slide 18: Freetrade enhances our position in the high-growth UK market
Freetrade enhances our position in the high-growth UK self-directed trading and investments market A high-growth customer champion... ..in a large and fast-growing market v Enhances our UK D2C investments offering Y c.£400bn UK industry D2C investment platform . ; AUA growing at 10% p.a.' Y Broadens
Slide 19: Freetrade has strong growth momentum
Freetrade has strong growth momentum AUA' (£ billion, period end) Customers with £10k+ AUA (‘000) Calendar year periods a Calendar year periods 2022 2023 2024 2022 2023 2024 Total revenue (£ million) Ave. AUA of customers with £10k+ AUA (£’000) Calendar year periods Calendar year periods Q4 annualis
Slide 20: Enhancing our culture to drive growth
Enhancing our culture to drive growth Increasing client centricity ¥ Implemented new decentralised organisation structure v¥ Embedded product and marketing teams closer to users v Enhanced ownership and accountability Adding talent v New divisional leaders in role ¥ Ongoing assessment of senior lead
Slide 21: Improving efficiency
Improving efficiency Exiting units delivering unacceptable returns v Exited Spectrum = Revenue has been below expectations in FY24 and FY25 = Project was broadly breakeven in H1 FY25! = Core products will be offered more efficiently over-the-counter v Exited DailyFX Y Exited legacy stock trading ini
Slide 22: Summary
IG Group Summary
Slide 23: Summary
Summary = Making progress against our initial priorities = Investing in our product and embedding a high-performance culture to drive growth = Announced proposed acquisition of Freetrade = Extended share buyback by £50 million to £200 million =" Ongoing assessment of M&A to fill capability gaps and
Slide 24: Q&A
Q&A IG Group
Slide 25: Appendices
IG Group Appendices
Slide 26: Reconciliation of alternative performance measures
Appendix 1 Reconciliation of alternative performance measures Adjusted operating costs (£m) H1 H1 Adjusted profit before taxation and EPS £m (unless stated) H1 H1 FY25 FY24 FY25 FY24 Operating costs 294.2 299.9 Earnings per share 517 33.4 Net credit losses on financial assets 07 10.5 Weighted averag
Slide 27: tastytrade performance summary
Appendix 2 tastytrade performance summary tastytrade revenue ($m) ™ Trading revenue m Interest income 47 ao 45 20 72 73 73 88 H1 H2 H1 H2 H1 H2 H1 FY22 FY22 FY23 FY23 FY24 FY24 FY25 | tastytrade customer cash balances held off balance sheet ? Market value of tastytrade open customer positions ™ Clie
Slide 28: Regulatory capital headroom bridge
Appendix 3 Regulatory capital headroom bridge 19 10) 12 8) = |_| 658 424 Fy24! £150m share Change in Interim Capital Balance sheet H1FY25 Freetrade Freetrade £50mshare H2FY25 pro H2FY25 End FY25 pro buyback regulatory — dividend _— generation movements? incremental equity value* buyback forma capita
Slide 29: Cash balances
Appendix 4 Cash balances Client money held off balance sheet (£ million, period end) H1 FY25 FY24 variance H1 FY¥24 variance FY25 vatianes United States 1,624 1,512 7% 1,461 11% 1,562 4% Rest of World 2,214 2,283 (3%) 2,132 4% 2,304 (4%) Total 3,838 3,795 1% 3,593 7% 3,866 (1%) Client money held on
Slide 30: Litigation & risk management
Appendix 5 Litigation & risk management = Defending a class action matter filed in 2023 against two IG Group operating entities in Australia relating to alleged historical conduct, no material update since July 2024 = Successfully defended a claim against |G Group’s operating entity in Singapore for
Slide 31: Net trading revenue and drivers: OTC derivatives
Appendix 6 Net trading revenue and drivers: OTC derivatives Revenue (£m) H1 H2 0 -H1 H2 H1 H2 H1 FY25FY24_FY24 = FY23——FY23—-FY22_—~FY22 UK 1318 1343 1207 140.2 157.3 1709 157.2 EU 490 457 418 484 519 522 51.2 EMEA non-EU 249 240 20.3236 = 256 245 25.9 Australia 375393416 46.0 49.3 43.1 45.2 Singapo
Slide 32: Net trading revenue and drivers: ETDs and stock trading
Appendix 7 Net trading revenue and drivers: ETDs and stock trading Revenue (£m) FY25 FY24 FY24 FY23 FY23 FY22 FY22 H1 H2 HI H2~— HI OHH. ETDs - US market maker - - - O01 O05 O08 10 ETDs - tastytrade 70.2 69.2 582 597 612 573 528 ETDs -Europe 7.7 84.54 102 54 55 38 Exchange traded derivatives 780 77.
Slide 33: Mapping to new divisional disclosure: H1 FY25
Appendix 8 Mapping to new divisional disclosure: H1 FY25 Old disclosure New disclosure IG OTC derivatives £360.4m Europe Singapore Insti. £49.0m £38,0m £7.3m v B2B2C revenue being reallocated to Institutional & Emerging Markets division - adjustments as follows. UK Europe [MEMEAex£U|™ Australia [J S
Slide 34: Net trading revenue and drivers: divisional disclosure
Appendix 9 Net trading revenue and drivers: divisional disclosure Trading Revenue FY25 FY24 FY24 FY23 FY23° FY22 FY22 Revenue per client FY25 FY24 FY24 FY23 FY23 FY22 FY22 (£m) H1 H2 H1 H2 H1 H2 H1 (£) Hi H2 Hi H2 H1 H2 H1 UK & Ireland 138.3 138.6 125.0 143.7 161.7 179.0 1629 UK & Ireland 1,495 1,46
Slide 35: Net trading revenue and drivers: divisional disclosure
Appendix 10 Net trading revenue and drivers: divisional disclosure Trading revenue (£m) FY25 FY24 =FY24 =FY23.«-FY23——sFY22~—sFY22 H1 H2 H1 H2 H1 H2 H1 OTC derivatives 1274 1288 «=—115.7_ 134.1 152.7 = 1654 150.5 Exchange traded derivatives 0.2 0.0 0.0 0.0 0.0 0.0 0.0 Stock trading & Investments 10.
Slide 36: Net trading revenue and drivers: divisional disclosure
Appendix 11 Net trading revenue and drivers: divisional disclosure Active clients (000) FY25 FY24 =FY24 =FY23.«-FY23——sFY22~—sFY22 H1 H2 H1 H2 H1 H2 H1 OTC derivatives 47 43.0 438 = 459 = 487 ~— 506 50.2 Exchange traded derivatives 09 0.0 0.0 0.0 0.0 0.0 0.0 Stock trading & Investments 56.0 578 60.2
Slide 37: Net trading revenue and drivers: divisional disclosure
Appendix 12 Net trading revenue and drivers: divisional disclosure Revenue per client (£) FY25. FY24.«-FY24-—«s FY23-—sFY23——sFY22~—FY22 UK & Ireland H1 H2 H1 H2 H1 H2 H1 OTC derivatives 3,056 2998 2640 2921 3,136 3,270 2,998 Exchange traded derivatives 269 2,137 2,561 616 312 175 384 Stock trading
Slide 38: Disclaimer
Disclaimer This presentation, prepared by |G Group Holdings plc (the "Company"), may contain forward-looking statements about the Company and its subsidiaries (the "Group"). Such forward-looking statements can be identified by the use of forward- looking terminology, including the terms "believes",