Interactive Brokers Group, Inc. · NASDAQ:IBKR
Interactive Brokers — Goldman Sachs US Financial Services Conference 2022
23 slides from Interactive Brokers's conference presentation, Dec 7, 2022
Slide 1: Goldman Sachs US Financial Services Conference
Goldman Sachs US Financial Services Conference December 7, 2022 Interactive Brokers, LLC Member NYSE - FINRA - SIPC
Slide 2: Disclaimer
Disclaimer Non-GAAP Financial Measures We use certain non-GAAP financial measures as additional measures to enhance the understanding of our financial results. This presentation includes the following non- GAAP financial measures: adjusted net revenues, adjusted variable expenses, adjusted fixed exp
Slide 3: Financial Strength – Liquid and Growing
Financial Strength – Liquid and Growing • Over 99% of our balance sheet is comprised of liquid assets. September 2022 Total Membership Interests 419.5 million Held by management 316.6 million 75.5% & their affiliates Publicly held 102.9 million 24.5% Total Market Capitalization $26.8 billion Public
Slide 4: Company Overview
Company Overview 2.0mil +31% Client Accounts1 YoY1 Account Growth We Are a Highly Automated Electronic Broker $287B 2.0mil $10.9B Client Equity1 DARTs1,3 Total Equity1 We use our proprietary technology and international market-maker experience to offer low cost, seamless global access to multiple ty
Slide 5: The IBKR Advantage
The IBKR Advantage Versatile Platform Broad Product Offering Seamless electronic market access to stocks, options, futures, Access to multiple products in multiple currencies from a single forex, commodities, bonds, crypto1, mutual funds and ETFs Integrated Investment Management Account requires
Slide 6: Impact of Automation
Impact of Automation Automation allows IBKR to be one of the lowest cost processors in the industry • Majority of senior management are software engineers, committed to automating as many processes as possible • From account opening through the entire transaction lifecycle, our processes are automat
Slide 7: Cost Comparison
Cost Comparison US Margin Loan Rates Comparison2 3 $ 25K $ 300K $ 1.5M $ 3.5M IBKR Continues to be the “Lowest Cost Broker”1 Interactive Brokers 4.58% 4.24% 4.03% 3.91% • IBKR clients recognize that they can maximize E-Trade 11.45% 9.95% N/A N/A returns by minimizing their costs • Barron’s has recog
Slide 8: FinTech vs Financial Services
FinTech vs Financial Services Financial Services FinTech IBKR Changes an existing Technology assists A class of its own, business model in existing business combining the best finance in a material model from both industries way ✓ ✓ Established Business Sustained Growth ✓ ✓ ✓ ✓ > 50% Pre-tax Margins
Slide 9: Broad, Global Addressable Market
Broad, Global Addressable Market • Interactive Brokers operates globally, in multiple currencies across multiple client segments, which significantly enhances our addressable market size • IBKR currently has customers in over 200 countries and territories, with about three-quarters located internati
Slide 10: IBKR Growth Continues
IBKR Growth Continues Multiple factors, including increased interest in the financial More accounts on our platform has led to markets and the growing interconnectedness of investors more client assets held at IBKR. worldwide, have propelled account growth. 10
Slide 11: IBKR Growth Continues
IBKR Growth Continues More accounts and client equity on our …as well as higher margin loans. This drives our superior, industry- highly automated platform mean higher leading profit margins. activity, as seen in increased DARTs... 1See reconciliation of non-GAAP measures at the end of this presenta
Slide 12: Diversified Client Base – by Client Type
Diversified Client Base – by Client Type As of September 30, 2022 Individuals Hedge and Mutual Funds Proprietary Trading Groups Financial Advisors Introducing Brokers 12
Slide 13: Diversified Client Base – by Geography
Diversified Client Base – by Geography As of September 30, 2022 North America Europe Asia-Pacific 13
Slide 14: Earn Interest on Uninvested Cash Balances
Earn Interest on Uninvested Cash Balances • Client accounts are eligible to receive credit interest on long settled cash balances in their securities accounts. 1 • Accounts with a Net Asset Value (NAV) of $100,000 (or equivalent) or more are paid interest at the full rate for which they are eligible
Slide 15: Sustainable Investing
Sustainable Investing The Impact Dashboard ensures that a client’s investments is aligned with their values. Impact Dashboard Interactive Brokers has a suite of environmental, social and IMPACT App governance (ESG) tools to ESG Scores develop a conscientious This standalone app adds Invest Responsib
Slide 16: IBKR GlobalTrader
IBKR GlobalTrader IBKR Scan the Globe for Undervalued Stocks. This helps in Global identifying new investment opportunities by comparing the prices Analyst and financial metrics of global stocks using the same currency. Deposit Make deposits in one of 26 different currencies, and Local automatically
Slide 17: Recent Enhancements and New Products
Recent Enhancements and New Products Fractional Shares Trading, now for European stocks and ETFs – allows investors the opportunity to trade across markets in a more affordable way. With fractional shares, there is no minimum for buying European or US shares and investors can invest with as little a
Slide 18: Recent Enhancements and New Products
Recent Enhancements and New Products IBKR EventTrader – event contracts lets clients express their view on whether the price of key futures markets will move up or down by the end of each day's trading session. They can select from event contracts in the Equity Index, Energy, Metals and Foreign curr
Slide 19: Recognized Industry Leader
Recognized Industry Leader 2022 StockBrokers.com Awards: #1 for Professional Tools #1 for Futures Trading 2022 Barron’s Awards1: #1 for Offering of Investments Rated #1 - Best Online Broker (5 out of 5 stars) IBKR’s Multiple Trading Platforms, #1 International Trading Rated #1 for Active Traders 5 o
Slide 20: Appendix
Appendix & interactiveBrokers 0
Slide 21: Pioneer in technology throughout the years
Pioneer in technology throughout the years Over four decades of developing our automated trading platforms allow us to be the lowest cost broker-dealer Ushered a new era of computerized Thomas trading with a Launched Peterffy buys fully Introduces cryptocurrency a seat on the automated Established z
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended December 31, Year Ended December 31, 2019 2020 2021 2019 2020 2021 (in millions) (in millions) Adjusted net revenues Adjusted variable expenses Net revenues - GAAP $ 1,937 $ 2,218 $ 2,714 Execution, clearing and distribution fees $ 251 $ 293 $ 236 Non-GAAP adjustme
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 (in millions) Adjusted net revenues Net revenues - GAAP $ 532 $ 539 $ 548 $ 599 $ 893 $ 754 $ 464 $ 603 $ 645 $ 656 $ 790 Non-GAAP adjustments Currency diversification strategy, net 49 (16) (27) 13 2 9 3 23
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