Stonex Group Inc. · NASDAQ:SNEX
Stonex — Conference Presentation (August 2020)
26 slides from Stonex's conference presentation, Aug 19, 2020
Slide 1: The Leading Mid-Sized Financial Services Franchise
THE LEADING MID-SIZED FINANCIAL SERVICES FRANCHISE PRESENTATION TITLE GOES HERE Business Entity Goes Here (e.g. INTL FCStone Financial Inc.) Business Entity Membership If Applicable Goes Here (e.g. Member FINRA/MSRB/SIPC) Business Division Goes Here (e.g. FCM Division) NAME GOES HERE Job Title Goes
Slide 2: Disclaimer
Disclaimer Unless otherwise indicated or the context otherwise requires, references in this presentation to “StoneX,” “we,” “our,” “us” and the “Company” refer to StoneX Group Inc., a Delaware corporation, and its consolidated subsidiaries. “GCAP” refers to Gain Capital Holdings, Inc., a Delaware co
Slide 3: cof
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Slide 4: Long Term Financial Performance
Long Term Financial Performance 10,000 28.9% 9,000 8,000 7,000 6,000 5,000 4,000 Index (2002=100) Index 3,000 18.1% 2,000 1,000 8.1% 0 INTL Book Value / Share Russell 2000 INTL Market Value / Share 4
Slide 5: Long Term Financial Performance
Long Term Financial Performance (1) (in millions) $1,400 Operating Revenue Book Value of Equity Market Value of Equity $1,253.1 $1,200 $1,062.3 $1,000 $800 $688.8 $600 $400 $200 -- (1) Operating revenue represents results for the fiscal year where indicated and the last twelve months ended June 30,
Slide 6: We Connect Clients to Markets
We Connect Clients to Markets StoneX provides institutional-grade global market access, end-to-end clearing and execution, high-touch service and deep expertise through one trusted partner. 6
Slide 7: Market Presence
Market Presence Execution and Clearing Customers 36 Exchanges 30,000 institutional Nearly all Securities Market Venues 125,000 retail Global Payments & FX Prime Brokerage GCAP acquisition adds 140,000+ retail OTC products – Commodity & Financials Combined with GCAP over 15,000 OTC markets Trading Vo
Slide 8: Expansive Combined Global Footprint
Expansive Combined Global Footprint MORE THAN 300,000 CLIENTS CLIENTS IN MORE THAN 180 COUNTRIES OVER 2,900 STAFF LOCATED IN 17 COUNTRIES AND 5 GCAP CONTINENTS INTL Americas EMEA APAC Exchanges and Industry Associations Regulatory Bodies Note: As of July 31,2020, following the closing of the acquisi
Slide 9: Business Segment Overview + Gain Capital
Business Segment Overview + Gain Capital Includes Gain Capital Holdings, Inc. trailing twelve months for reference only CLEARING AND COMMERCIAL PHYSICAL GLOBAL SECURITIES EXECUTION GCAP HEDGING COMMODITIES PAYMENTS SERVICES Net Operating Revenue $248 (21%) $92 (8%) $109 (9%) $256 (22%) $122 (10%) $3
Slide 10: Competitive Advantages
Competitive Advantages Competitive Advantage Details Unique network providing unparalleled access . We connect clients to 36 derivatives exchanges, markets for securities and foreign exchange in virtually every country, and to the global financial market ecosystem numerous liquidity venues for swaps
Slide 11: Financial Performance Advantages
Financial Performance Advantages Financial Performance Advantage Details Business model provides for diverse revenue . Revenue is dependent on transaction volume, interest rates and the size of our client base sources . Our revenue stream is diversified by asset class, client type and geography, and
Slide 12: GCAP Merger Rationale
GCAP Merger Rationale • Scale matters to clients, regulators and counterparties (1) • We are now a $1bn market cap company; • With over $1.3bn in revenues for the LTM and • Nearly $700mm in stockholders’ equity • Broadens and deepens product and capabilities for all our clients • Drives client engag
Slide 13: Financial Overview
StonexX’” FINANCIAL OVERVIEW
Slide 14: Quarterly Performance Trend
Quarterly Performance Trend 14
Slide 15: Long-Term Performance
Long-Term Performance Operating Revenue ($mm) Net Income From Continuing Operations ($mm) 1400 $1,253 140 $119(5) 1200 $1,106 120 $976 1000 100 $85(4)(5) $784 800 80 $624 $671 $56 $55 $56(2)(3) 600 60 400 40 200 20 $6(1) 0 0 2015 2016 2017 2018 2019 TTM 2015 2016 2017 2018 2019 TTM Stockholder’s Equ
Slide 16: Balance Sheet Summary
Balance Sheet Summary (in millions) 9/30/2019 6/30/2020 Cash and cash equivalents 471.3 465.2 Restricted cash held in escrow - 350.0 Conservatively capitalized with minimal Cash, securities and other assets segregated under federal and debt 1 other regulations 1,049.9 1,145.2 • 1.21x Debt/Equity a
Slide 17: Appendices
StonexX’” APPENDICES
Slide 18: Commercial Hedging
Commercial Hedging Transactional Revenue Breakdown (LTM) . Delivering a high touch, value added service to commercial clients seeking to manage risk 6% . Long term quality relationships with clients . Comprehensive platform allows access to advice, 20% exchange listed products, OTC and structured pr
Slide 19: Global Payments
Global Payments . Leading capability to offer a global payments solution to clients in over 140 currencies and markets . Value-added execution efficiencies - strong ties to local correspondent banks affords access to best rates . Significant investment in technology to reduce costs and create scalab
Slide 20: Securities
Securities • We are the #1 ranking market maker by dollar value for E international securities traded over-the-counter, three years Net Operating Revenue Breakdown (LTM) q running u • We rank #1 by dollar value in over 2,600 securities 2% i • We make markets in over 5,000 securities including over 3
Slide 21: Physical Commodities
Physical Commodities . Full range of trading and hedging capabilities, including Net Operating Revenue Breakdown (LTM) OTC products, to select producers, consumers, and investors . Act as principal, commit own capital to buy/sell on spot and forward basis 26% . Provide commodity financing and facili
Slide 22: Clearing and Execution
Clearing and Execution . Competitive and efficient clearing and execution of Net Operating Revenue Breakdown (LTM) exchange-traded futures and options for traders and institutions 15% . Provide services for institutional and professional trader market segments 33% . Offer facilities management and o
Slide 23: GCAP Business Overview
GCAP Business Overview Retail Futures LTM 3/31/20 $342.4 million (89%) $40.5 million (11%) Net Revenue . Business is conducted primarily through the Company’s FOREX.com and City . Offers execution and related services for exchange-traded futures and futures Index brands options on major U.S and Euro
Slide 24: GCAP: Historical Reconciliation to Net Operating Revenue
GCAP: Historical Reconciliation to Net Operating Revenue Last Twelve Months ($Millions) Ended June 30, 2020 Net revenue $406.7 - Referral fees (36.7) - Bank fees (16.2) - Futures trading expenses (7.8) Net operating revenue $345.9
Slide 25: SNEX: Non-GAAP Reconciliation to Adjusted Net Income
SNEX: Non-GAAP Reconciliation to Adjusted Net Income Twelve Months Ended (in millions) September 30, September 30, September 30, September 30, September 30, June 30, Reconciliation of net income to adjusted net income (non-GAAP) 2015 2016 2017(a) 2018 2019 2020 Net income, as reported (GAAP) $ 55.7
Slide 26: Thank You
THANK YOU StonexX’™