Slide 1: Strong delivery of our strategy in 2022
Strong delivery of our strategy in 2022 2022 financial results
Slide 2: Strong, broad-based growth in 2022
Strong, broad-based growth in 2022 Over-delivering on Refinitiv: growth and efficiency Investing to enhance our customer offering Significant value creation opportunity with Microsoft Shifting from integration to transformation Building a platform for sustained growth 2
Slide 3: Strong financial and operational performance in 2022
Strong financial and operational performance in 2022 Anna Manz, CFO
Slide 4: Delivering on our targets
Delivering on our targets Broad-based growth and margin expansion Strong cash flow, funding investment and capital returns Expect further delivery in 2023: targeting 6 - 8% growth1 1. Constant currency Total Income excl recoveries, including M&A completed in 2022 4
Slide 5: Targets delivered: income growth, margin, synergies
TARGET Total income growth 6.6% 5-7% ✓ (excl. U/R) 1 2020-23 CAGR At least 50% 3 47.8% 2 EBITDA margin by exit 2023 ✓ Revenue synergies £68m £350-£400m runrate basis by end 2025 ✓ ✓ Target raised runrate basis Cost synergies £297m >£400m runrate basis by end 2025 ✓ ✓ Delivery accelerated runrate bas
Slide 6: Group financial summary 2022
Constant Currency £m 2022 2021 Growth Growth1 Total Income (excl. recoveries) 7,428 6,211 19.6% 5.7% Adjusted EBITDA 3,550 2,969 19.6% 6.0% Adjusted EBITDA Margin 47.8% 47.8% - - Adjusted operating profit 2,728 2,282 19.5% 4.6% Adjusted profit for the year 2,028 1,684 20.4% - Adjusted basic earnings
Slide 7: 6.6% total income growth
£m 6.6% growth1 7,428 5.3%1 9.8% 7.5% 4.2% incl. U/R 6,587 20212 Data & Capital Post FX & 20222 Analytics Markets Trade Other3 Growth rates on a constant currency pro-forma basis, excluding the deferred revenue adjustment, unless otherwise noted 1. Excludes Ukraine/Russia impacts 2. Total income exc
Slide 8: Data & Analytics 5.3% growth
£m 5.3% growth1 4,944 6.2% 3.0% 9.5% 2.3%1 6.1% 0.2% incl. U/R 4,398 20212 Trading & Enterprise Investment Wealth Customer & FX & 20222 Banking Data Solutions Solutions Third Party Other3 Risk Growth rates on a constant currency basis excluding the deferred revenue accounting adjustment, unless othe
Slide 9: Trading & Banking, Enterprise Data, Investment Solutions
Trading & Banking Enterprise Data Investment Solutions Four consecutive Strong demand in Real-Time: Good growth in subscription revenue, quarters of growth improved offer 33% increase in new products Significant improvement Synergy benefits Asset-based revenue impacted in retention with FTSE Russell
Slide 10: ASV growth rate
+320bp increase since acquisition 6.2% 5.8% 5.4% 4.9% 4.6% 3.9% 4.0% 3.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2021 2021 2021 2022 2022 2022 2022 ASV growth rate Impact of Ukraine/Russia conflict Annual Subscription Value (ASV) growth is a constant currency point-in-time year-on-year organic measure of subs
Slide 11: Capital Markets 9.8% growth
£m 9.8% growth 13.4% 1,459 3.2% 4.2% 1,249 1,249 2021 1 Equities FX Fixed Income, FX & 2022 Trading Derivatives Other2 & Other Equities: Secondary FX Trading: Continued high Fixed Income, Derivatives & trading activity flat single-digit growth in FXall Other: Further innovation-driven growth at Trad
Slide 12: Post Trade 7.5% growth
£m 7.5% growth 18.8% 10.0% 3.6% 991 3.8% 906 2021 OTC Securities & Non Cash Net Treasury FX 2022 Derivatives Reporting Collateral Income OTC Derivatives: Securities & Reporting: Net Treasury Income: Record SwapClear activity; Strong RepoClear volumes; Higher collateral balances growth in uncleared s
Slide 13: EBITDA margin
1.1% 47.8% 47.8% 0.3% 0.5% 0.3% 20211 FX Ukraine/ M&A Underlying 20221 Russia business conflict performance 1. Reported EBITDA margin The deferred revenue accounting adjustment had a +0.2% impact on margin which was offset by the pro-forma impact of -0.2% on margin. 13
Slide 14: Operating expenses
£m 4.4% 127 133 1.0% 117 3,140 3.3% 28 96 4.6% 2,905 20211 Ongoing Investment Cost Acquisitions3 FX4 2022 operating for growth2 synergies costs 1. Pro-forma adjusted operating expenses 2. Comprises investment in technology modernisation, increasing cloud usage, costs of delivering strong growth at T
Slide 15: Cost synergies ahead of acquisition target
Strategic supplier Data Property(1) agreements(1) centres(1) Total cost synergies at least £50m ahead of acquisition target2 Expect to deliver the Agreements Properties Data centres significant majority of renegotiated, exited, optimised, cost synergies roughly out of 41 targeted out of 36 targeted
Slide 16: Adjusted to statutory operating profit
£m 2022 2021 Adjusted Operating Profit 2,728 2,282 Transaction costs (85) (109) Integration, separation & restructuring costs (304) (225) Profit on disposal & remeasurement gains 156 - Amortisation & impairment of purchased intangible assets (1,044) (851) Depreciation & impairment of other assets (3
Slide 17: Cash flow
£m 200 610 231 3,282 70 351 1,893 966 1,664 979 Profit from Depreciation, Other Working 2022 Net interest Other Taxes Capex Equity Free continuing amortisation, items1 capital Operating & royalties dividends, paid Cash Flow operations impairments Cash Flow paid net 17 1. Includes share based payment
Slide 18: Maintaining target leverage of 1-2x
Actions in 2022 Capex Acquisitions Significant progress in organic investment strategy Completed four acquisitions Broad capital Dividend increased 12.6%1 deployment in 2022 Share buyback of £750m announced; £300m completed in 2022 Share Dividends Buyback Maintaining target leverage of 1 – 2x 1. FY2
Slide 19: Continued progressive dividend policy
£m Continued progressive dividend policy Completion of existing 300 £750m share buyback 567 Directed share buyback 426 of up to £750m1 257 2020 2021 2022 20231 Dividends paid in-year Share buyback 1. Directed share buyback (subject to AGM approval) of up to £750m will be completed by April 2024 19
Slide 20: 2023 guidance
Total income (excl. recoveries): 6%-8%, constant currency, including M&A completed in 2022 Around 48%1, inclusive of Microsoft-related expenses and M&A costs EBITDA margin: Exit margin of at least 50% on constant perimeter basis 3 BAU Capex: Around £750m1, including Microsoft and 2022 M&A Revenue sy
Slide 21: Good start to 2023
Good start to 2023 Expect further strong synergy delivery Strong cash flow, funding investment and capital returns 21
Slide 22: From integration to transformation
From integration to transformation David Schwimmer, CEO
Slide 23: Delivering on Refinitiv acquisition two years on
Delivering on Refinitiv acquisition… two years on Building efficient, scalable platforms for further growth Partnering with Microsoft 23
Slide 24: Data & Analytics: building solutions and getting closer to customers
6.2% Getting closer to customers, raising 5.3%1 performance Building cutting-edge solutions for 2.5% modern workflows Delivering more agile and resilient infrastructure 2020 2022 Dec 2022 Data & Analytics revenues2 ASV growth 1. Excluding Ukraine/Russia 24 2. Growth in Total Income excl. recoveries
Slide 25: Execution and investment benefits
+ 2019 2020 2021 2022 -0.3% -1.2% -2.1% Execution benefits Investment benefits Significant in 2021 & 2022 in 2023 further potential • Better customer insights • TORA • Completion of • Improved pipeline • Further value from Workspace rollout management improved execution • Microsoft strategic partner
Slide 26: Revenue synergy target increased
£m 350-400 >100 synergy related products launched since completion of the acquisition 225 Leveraging the power of the combined business; strong customer engagement Significantly increasing target revenue synergies Original target Updated target1 1. £350m-400m of runrate revenue synergies by end of 2
Slide 27: Leading positions across divisions
Data & Analytics: • Longstanding relationships with most major banks and asset managers • Global leader in real-time data 67% Data & Analytics • Top-3 global index provider • Many other leading data and workflow solutions Capital Markets: • #1 global dealer-to-client FX platform Capital • Leading gl
Slide 28: Real-Time acceleration in 2022
Acceleration in 20221 Performance drivers Next steps 2022 6.1% Technology investment Strong pipeline of driving demand in Real-Time technology upgrades 2021 3.7% Workflow Improved distribution Expanding distribution integration +16pp2 particularly for PRS channels Product satisfaction +6pp2 Signific
Slide 29: Structural growth driver shifting in clearing
Primary driver of structural growth is shifting: from mandatory clearing, to balance sheet efficiency A decade of growth at SwapClear1 Strong growth in SwapAgent1 …and ForexClear1 1,300 $3.9trn $25trn 1,100 $22trn 900 $19trn $1.7trn 700 $1.2trn 500 2020 2021 2022 2020 2021 2022 300 Further accelerat
Slide 30: Connecting Tradeweb, SwapClear, Workspace, FXall
Pre-trade access to Deep and growing Access to post-trade risk insights and liquidity pools of liquidity management services Tradeweb SwapClear Global #1 interest rate swap Reducing customers’ execution clearing venue risk in EM debt through connectivity to FXall Workspace FXall ForexClear Delivery
Slide 31: Microsoft partnership: data platform, analytics, Workspace
1 State-of-the-art data platform Facilitated by 2 Innovative analytics and modelling infrastructure partnership 3 Next generation Workspace 31
Slide 32: Workspace and Microsoft integration
Single sign on for Workspace and Microsoft products Seamless access to LSEG content inside Microsoft apps Deep interoperability between Workspace and Microsoft products Multi-firm communications and collaboration in Teams Key workflows inside Teams with LSEG bots, AI-powered analytics 32
Slide 33: Value share, volume share, new adjacent markets
Value share Volume share New, adjacent markets • Significantly enhanced • Seamless • Cloud-based modelling functionality interoperability and analytics • Rolling upgrades • Consumption-based • Corporate and consumer and add-ons pricing over time Teams users 33
Slide 34: Strong, broad-based growth in 2022
Strong, broad-based growth in 2022 Over-delivering on Refinitiv: growth and efficiency Investing to enhance our customer offering Significant value creation opportunity with Microsoft Shifting from integration to transformation Confident of further progress in 2023 34
Slide 35: Appendix
Appendix
Slide 36: Key performance indicators by division
ASV growth(1) Subscription ESG AUM(2) ETF AUM ANALYTICS revenue growth(1) DATA & $296bn $1,009bn +6.2% +5.7% +77% -11% TRADEWEB ADV UK Equity ADV FX ADV MARKETS CAPITAL Rates - Derivatives Credit - Cash £4.6bn $452bn $342bn $10bn +2% +2% +17% +9% SwapClear client RepoClear Average non-cash Average c
Slide 37: Total income by geography and currency
Total Income by Total Income by currency1 Total costs by currency2 geography1 18% 26% 39% 46% 17% 57% 50% 11% 8% 15% 13% Americas Asia EMEA USD GBP EUR Other USD GBP EUR Other 1. 2022 Total Income including Recoveries. Geography based on customer location 2. 2022 Total costs including cost of sales,
Slide 38: Income by currency per division
Data & Analytics Capital Markets Post Trade 12% 21% 20% 12% 2% 44% 65% 59% 11% 19% 34% 1% USD GBP EUR Other USD GBP EUR Other USD GBP EUR Other 1. 2022 Total Income by division including recoveries 38
Slide 39: Quarterly revenue by business
£m Q11 Q2 Q3 Q4 20211 Q1 Q2 Q3 Q4 2022 Trading & Banking Solutions 372 373 373 375 1,493 378 391 417 426 1,612 Trading 297 297 296 296 1,186 298 308 330 339 1,275 Banking 75 76 77 79 307 80 83 87 87 337 Enterprise Data Solutions 279 282 284 296 1,141 304 317 332 354 1,307 Real-Time Data 178 182 182
Slide 40: Investor relations contacts
Peregrine Riviere London Stock Exchange Group plc Group Head of Investor Relations 10 Paternoster Square Tel: +44 (0)7 977 379 063 London Email: peregrine.riviere@lseg.com EC4M 7LS Chris Turner Investor Relations Senior Director Contacts and further information Tel: +44 (0)7 769 931 614 For investor