Tp Icap Group Plc · LSE:TCAP
Tp Icap — Investor Day (December 2020)
10 slides from Tp Icap's investor day presentation, Dec 1, 2020
Slide 1: Data & Analytics
Eric Sinclair Data & Analytics 34
Slide 2: Data & Analytics: Overview
Data & Analytics: Overview Double Digit Growth, High Margins, Recurring Revenue ● A leading provider of scarce OTC data and neutral pricing information OTC Coverage Revenue (£m) — Market leading data production and quality delivering 500k+ instruments Money Rates markets — Leverages TP ICAP’s propri
Slide 3: Medium Term Strategy
Medium Term Strategy Three-Pronged Strategy: Product, Clients and Distribution ● Operating in a large and growing global market Market Data Revenues (US$bn) 5yr CAGR — Market data revenue: c.$38 billion in 2019, 5-year CAGR: 4.5%1 37.7 4.5% 4.8% 30.2 ● Significant potential opportunity to increase m
Slide 4: Product Strategy
Product Strategy Moving up the Value Pyramid ● Historical focus has been on Data products Product examples — 25 products have been launched since 2018 • Al and ML solutions — c.32% of 2020 sales from new products WISDOM • Predictive Analytics — 100% of 2019 revenues from Data products and services •
Slide 5: Client Strategy
Client Strategy Diversify & Expand ● Shift emphasis to buy-side clients — Targeting 45% from buy-side clients by 2025 — New Information and Knowledge products aimed at unmet buy-side needs including Client mix (% of clients) — Regulatory requirement for neutral, observable data — Advanced analytics
Slide 6: Distribution Strategy
Distribution Strategy Enabling Clients and diversifying Channel Partners ● Enabling clients – Improving optionality and accessibility Client Enablement Strategy – Providing Optionality — New initiatives expected to provide more options to access products 1 Client premises — Three key ways clients ca
Slide 7: Delivering on product, customer & distribution strategies
Delivering on product, customer & distribution strategies Case Study: Pre/Post Trade Analytics ● Development of Pre/Post Trade Analytics Pre/Post Trade Analytics — Knowledge product higher up the value pyramid • Exploit multi-asset OTC data sets • Integrate client data, increase revenue stickiness •
Slide 8: Data & Analytics Financial Targets
Data & Analytics Financial Targets Double Digit Growth, Diversified, Recurring Revenue ● Financial targets Revenue Growth — Revenue Growth: — Medium term target: c.11% CAGR c.11% Revenue CAGR target — Contribution Margin: £135m — 2023 target: c.50% — Medium term target: c.53% — Operating Margin: 201
Slide 9: Disclaimer
Disclaimer This presentation has been prepared by TP ICAP plc (together with its subsidiaries, the “Group”) solely for informational purposes. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of t
Slide 10: TP ICAP Capital Markets Day
TP ICAP Capital Markets Day 1 December 2020