London Stock Exchange Group Plc · LSE:LSEG
London Stock Exchange — Investor Presentation (December 2024)
24 slides from London Stock Exchange's investor presentation, Dec 10, 2024
Slide 1: FTSE Russell Investor webinar
FTSE Russell Investor webinar Fiona Bassett, Head of FTSE Russell 10th December 2024
Slide 2: Agenda
Agenda 1 FTSE Russell: Who we are 2 The strategic opportunity 3 Q&A 2
Slide 3: FTSE Russell: Who we are
FTSE Russell: Who we are
Slide 4: Leading global provider of benchmark and index solutions
Leading global provider of benchmark and index solutions - Trusted partner to global financial institutions and asset owners - Long history of innovation; evolving with customer needs - Strong track record of growth and efficiency Top-3 $18tn 94 9 10.8% global index of assets of 100 largest global o
Slide 5: Diversified across products and asset classes
HIGHLY RESTRICTED - INTERNAL Diversified across products and asset classes Leading equity products: Revenues by offering • Russell US Fixed income, • FTSE Global Equity Index Series FX, sustainability & other • FTSE UK US equity • FTSE China A50 33% Broad offering across fixed income, 44% £909m1 FX,
Slide 6: Partnering with customers to provide solutions to their index needs
Partnering with customers to provide solutions to their index needs Investment research Portfolio management, incl. Performance analysis and market analysis passive index-tracking and attribution and active benchmarking Customer Trading and financial Valuation and reporting instrument creation risk
Slide 7: Case Study: FTSE Phoenix Climate Aware Index Series
Case Study: FTSE Phoenix Climate Aware Index Series Customer need: Phoenix were looking to deliver on their net zero commitments Our solution: A bespoke index offering using proprietary climate data, delivered in partnership Customer outcome: £30bn initial investment committed, with additional produ
Slide 8: Monetised through a mix of recurring and asset-based revenues
Monetised through a mix of recurring and asset-based revenues Subscription revenues Asset-based revenues From customers using our indices and From customers building benchmarks to measure the passive investment vehicles performance and risk of their active 33% or derivatives on our indices investmen
Slide 9: Delivering a multi-year acceleration in growth
Delivering a multi-year acceleration in growth Multi-year acceleration in subscription revenues1 Strong growth in ETF assets4 using our indices $1.4tn 12.0% 10.9% $1.2tn 2 $1.1tn 9.4% 9.4% $1.0tn $0.9tn 6.0% 3 3 2020 2021 2022 2023 YTD 2020 2021 2022 2023 YTD 1. FTSE Russell subscription revenues, c
Slide 10: FTSE Russell is at the heart of LSEG’s end-to-end offering
HIGHLY RESTRICTED - INTERNAL FTSE Russell is at the heart of LSEG’s end-to-end offering Realising significant Delivering on win-win synergies through opportunities with increased connectivity Capital Markets and with Data & Analytics Post Trade • Access to LSEG’s • LSEG’s trading venues superior bre
Slide 11: The strategic opportunity
The strategic opportunity
Slide 12: A large and growing segment
A large and growing segment A £4-5bn segment, growing at 8-10%1 Multiple structural growth drivers Growth in passive investing FTSE Fund inflows from retirement accounts Russell £0.8bn Growing interest in Asia and Emerging Markets Industry segment Rising importance of specialised benchmarks & assets
Slide 13: Executing against multiple drivers of long-term growth
Executing against multiple drivers of long-term growth % revenues Building for the future • Core equity products 67% 1 Amplifying • Multi-asset • Fixed income 33% 2 Scaling • FX and FICC benchmarks • Sustainability • Private markets - 3 Activating • Digital assets 13
Slide 14: Building for the future: strengthening the foundations of FTSE Russell
Building for the future: strengthening the foundations of FTSE Russell Investing Innovating Partnering Improving the agility, Building a culture of Creating value through capability and scalability of innovation a long-term partnership our platform through approach focused investment e.g. expanded A
Slide 15: Our leading global equity proposition
HIGHLY RESTRICTED - INTERNAL Our leading global equity proposition Amplifying >40yrs equity index leadership >$1.0tn ~120 in equity ETF index-linked futures assets benchmarked1 and options listed on 15 global exchanges2 $10.6tn $2.2tn assets tracking assets tracking FTSE Russell US equity global equ
Slide 16: Well-positioned to capitalise on the market opportunity in sustainability
Well-positioned to capitalise on the market opportunity in sustainability Amplifying Expanding our footprint across… Further global development of our leading franchises Regions • e.g. Widening global adoption of Russell’s US and FTSE GEIS indices, helping Asian customers access the full breadth of
Slide 17: Fixed income is at the intersection of multiple secular tailwinds
Fixed income is at the intersection of multiple secular tailwinds Scaling Equity ETFs have grown rapidly over the last Fixed income ETFs are expected to follow a ~20 years similar path - Further expansion of global debt markets 6.4 - Continued adoption of electronic trading 6.0 - Improving fixed inc
Slide 18: Driving growth through partnership and innovation
Driving growth through partnership and innovation Scaling Well positioned in fixed income …with a clear strategy for growth • Strong and expanding partnership with Tradeweb • Expanding presence in adjacent segments ˗ e.g. U.S. Preference Shares and Hybrids, Asian • Innovating new solutions Local Cur
Slide 19: Replicating our success in FICC benchmarks
Replicating our success in FICC benchmarks Scaling Demonstrated success in FX Replicating across our benchmarks • Leading industry FX benchmark, WMR; • Extending scope and capabilities of our interest rate 30+ year history benchmarks ˗ e.g. USD IBOR Cash Fallbacks • Used by 49 of the top 50 global a
Slide 20: Well positioned to capitalise on the market opportunity in sustainability
Well positioned to capitalise on the market opportunity in sustainability Scaling Significant tailwinds in sustainability … Delivering against this growth • $10 trillion of assets under climate target setting • Expanding existing climate transition solutions to cross regimes1 asset class proposition
Slide 21: Building solutions for tomorrow’s indexing needs
Building solutions for tomorrow’s indexing needs Activating Digital assets Private markets Customer need: Customer need: Increasing institutional adoption is creating demand for Providing a solution to diversify or complement existing new solutions as industry matures portfolios by providing access
Slide 22: Well positioned in a large, growing segment
Well positioned in a large, Long runway for growth; growing segment multiple drivers Building solutions in Enhanced by natural partnership with customers linkages across LSEG 22
Slide 23: Q&A
Q&A
Slide 24: Contacts and further information
Contacts and further information Peregrine Riviere London Stock Exchange Group plc Group Head of Investor Relations 10 Paternoster Square Tel: +44 (0)7 977 379 063 | Email: peregrine.riviere@lseg.com London EC4M 7LS Chris Turner Investor Relations Senior Director Tel: +44 (0)7 769 931 614 | Email: c
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