Stonex Group Inc. · NASDAQ:SNEX
Stonex — International Assets Holding — Merger or Acquisition (July 2009)
30 slides from Stonex's merger presentation, Jul 15, 2009
Slide 1: Creates a Leading Global Provider of Consulting and Trade Execution Services
Exhibit 99.1 Creates a Leading Global Provider of Consulting and Trade Execution Services
Slide 2: Cautionary Statement and Additional Information
Cautionary Statement and Additional Information The following presentation should be taken in conjunction with the most recent financial statements and notes thereto as well as the most recent Form 10-Q filed with the SEC. This presentation may contain "forward-looking statements" within the meaning
Slide 3: Transaction Highlights
Transaction Highlights International Assets Holding Corp. (“INTL”) and FCStone Group, Inc. (“FCSX”) merge to create a leading global provider of consulting and trade execution services Transaction INTL and FCSX shareholders will own 52.5% / 47.5%, respectively FCStone will retain its name and operat
Slide 4: The Keys to the Transaction
The 3 Keys to the Transaction Integrating exchange-based, OTC and physical trading platforms and expertise in hard and soft commodities… Creates global, full-service provider to commodities market participants Combining two capital structures… Accelerates growth strategies, enhances access to credit
Slide 5: Global Leader in Specialized Markets
Global Leader in Specialized Markets Leading OTC trader and hedger of physical metals Significant player in hedging of agricultural, energy and soft commodities Foreign Commodities Exchange Leading provider of treasury services and Trading foreign exchange services Leading market maker in foreign eq
Slide 6: Strategic Fit
Strategic Fit High Touch Complex Markets Providing strategic recommendations and value added execution capabilities Risk Management Consulting OTC Market Making Complete trading solution for customer Exchange Traded Platform Hard Commodities, FX, Equities Complementary product expertise Agricultural
Slide 7: Complementary International Footprint
Complementary International Footprint Combined International Presence: • Relationships in over 100 Countries • Offices in 28 Cities • Locations in 11 Countries INTL Business Activity FCStone INTL 6
Slide 8: Structured for New Financial Services Landscape
Structured for New Financial Services Landscape Current environment is one of reduced access to and a higher cost of capital FCSX has a $75 million margin facility and $40 million of bank sub-debt outstanding, which matures July 22, 2010 and will be repaid with the proceeds from income tax refunds t
Slide 9: Strategic Growth Plan
Strategic Growth Plan Apply disciplined capital allocation approach by protecting and compounding capital Offer value added services to build durable revenue streams and create franchise value over time Broaden and deepen customer relationships globally Focus on organic growth and opportunistic add-
Slide 10: Contribution Analysis
Contribution Analysis ($ in millions) % Ownership INTL FCSX Adjusted EBITDA YTD 2009 Annualized 57% 43% MRQ Annualized 89% 11% 2009 Projected 59% 41% 2010 Projected 57% 43% Adjusted Net Income YTD 2009 Annualized 54% 46% MRQ Annualized 91% 9% 2009 Projected 56% 44% 2010 Projected 57% 43% Market Cap
Slide 11: FCStone Overview
FCStone UNDERSTAND: SIMPLIFY:SUCCEED Overview INTL 10 FCStone UNDERSTAND: SIMPLIFY: SUCCEED
Slide 12: FCSX – Customer Oriented Business Model
FCSX – Customer Oriented Business Model Customers / Industries Served Customers Agriculture Fuel Surcharge Carbon Credits Floor Traders Energy Livestock Introducing Brokers Professional Traders Renewable Fuels Food Products Introducing Brokers Weather Forest Products Risk Management Commodity & Clea
Slide 13: FCSX – CRM Business
FCSX – CRM Business Total Revenues ($ in millions) Serves risk management needs of $200 $177 middle-market intermediaries, end-users 150 and producers of commodities $128 100 $81 $87 Employs proprietary Integrated Risk $53 Management Program (“IRMP”) to design 50 customized risk management strategie
Slide 14: Why Do Customers Come to FCStone?
Why Do Customers Come to FCStone? • We improve customers’ bottom-line results • Strong brand, proprietary tool sets and outstanding clientele • Unique, holistic service – not just trading and hedging • Specialized, experienced consultants Integrated Risk Management Program (IRMP) GATHER & INDUSTRY A
Slide 15: FCSX – CES Business
FCSX – CES Business Clearing and execution of derivatives for institutional and professional traders Serves approximately 9,000 customers as an independent FCM Clearing member of all North American exchanges with access to all major international exchanges Primary focus on supporting C&RM customer t
Slide 16: FCSX – Historical Volume
FCSX – Historical Volume Commodity & Risk Management Exchange-Traded and OTC Contract Volume (000s) 6,000 4,904 5,000 4,242 3,872 1,361 3,983 4,000 1029 751 835 3,022 2,832 2,775 3,000 325 326 406 1,904 2,000 152 3,121 3,543 3,148 3,213 2,506 2,369 2,697 1,000 1,752 0 FY2005 FY2006 FY2007 FY2008 LTM
Slide 17: FCSX – Financial Performance
FCSX – Financial Performance Total Revenue (a) and Net Interest Income(b) ($ in millions) Adjusted EBITDA (b) ($ in millions) $100 $91 $20 $30 60% $88 $86 $26 $83 25 50 80 16 $20 $21 $17 20 $17 40 60 $54 12 $42 15 30 $12 40 $10 8 $9 10 28% 20 24% 24% $5 20 4 5 20% $2 10 $4 9% 3% $3 0 0 0 0 2/29/08 5
Slide 18: FCSX – Business Outlook
FCSX – Business Outlook Intermediate / Long – Term Market/Product Segment Near-Term Headwinds Opportunity Commercial Grain Leverage Less volatility Commodity price declines Relief in pricing pressure CoBank easing Renewable Fuels Bankruptcies New buyers enter industry Retrofitting opportunity Rising
Slide 19: FCSX – Risk Management Fundamentals
FCSX – Risk Management Fundamentals Commodity & Risk Management Customers Clearing & Execution Customers Primarily hedging strategies Primarily proprietary groups Risk consultants have close relationships Carefully screening of all prospective clients Business maintain physical inventories to suppor
Slide 20: INTL Overview
INTL Overview INTL UNDERSTAND: SIMPLIFY: SUCCEED
Slide 21: INTL – Overview
INTL – Overview Our Company Fortune 500 Company - Ranked #16 in ten year profit growth and #12 for returns to shareholders Five business units – commodities trading, foreign exchange, international equities market making, international debt capital markets and asset management Over 190 professionals
Slide 22: INTL – Business Model
INTL – Business Model Experienced Diversified Revenue Base Professionals International Equity Market-Making Commodities Trading Over 190 professionals globally Foreign Exchange 1 International Debt Capital Markets Management has over 50 years of combined experience in banking and Asset Management cr
Slide 23: INTL – Consistent Financial Performance
INTL – Consistent Financial Performance Adjusted Operating Revenue Adjusted Net Income $125 $117.0 $20 $17.0 $100.5 100 15 $77.0 $10.1 $11.0 75 10 $8.2 50 $43.4 5 $2.6 $22.0 $26.1 25 0 ($0.1) 0 (5) FY2004 FY2005 FY2006 FY2007 FY2008 YTD FY2004 FY2005 FY2006 FY2007 FY2008 YTD FY2009 FY2009 Ann. Ann.
Slide 24: OTC Commodities Trading
OTC Commodities Trading Assisting Commercial Players in Smaller Niche Markets What We Do Provide efficient OTC execution in base and precious metals Physical delivery Forward transactions and future deliveries Options and hedging programs Allow producers and consumers to effectively manage their exp
Slide 25: OTC Foreign Exchange Trading
OTC Foreign Exchange Trading Focusing on Less Liquid Exotic Markets Fxecute Statistics What We Do 200 1600 Total Number of active clients 180 1400 Leading provider of exotic FX and treasury services 160 Total Number of transactions 1200 covering 100+ countries 140 120 1000 Clients include over 400 N
Slide 26: OTC Equities Market-Making
OTC Equities Market-Making Market Maker in Niche Markets – Unlisted ADRs What We Do OTC Market maker in over 1,000 international equities Also quote over 8,000 international equities Focus on unlisted ADRs and foreign ordinaries – household names like Nestle, L’Oreal, Sainsbury, Marks & Spencer, Nin
Slide 27: Fee Earning Businesses
Fee Earning Businesses Investment Banking for Smaller Issuers and Leveraging Our Expertise For Investors What We Do Originate, structure and place wide array of emerging market debt instruments One of largest arrangers of ABS in Latin America with a dominant position in Argentina Our specialist expe
Slide 28: INTL – Customers
INTL – Customers We focus on dealing with commercial counterparties who are end-users of our financial products and services – have very few hedge fund or speculative clients. We have over 1,800 clients 27
Slide 29: Appendix
Appendix INTL 28 FCStone UNDERSTAND: SIMPLIFY: SUCCEED
Slide 30: FCSX – Financial Reconciliation
FCSX – Financial Reconciliation ($ millions) 2006 2007 2008 YTD Q3'09 Q3'09 Revenue (as reported) $1,294.8 $1,342.0 $337.5 $199.7 $57.5 Cost of commodities sold (1,112.9) (1,084.2) (1.1) (19.1) (16.0) Revenue, net of cost of commodities sold $181.9 $257.8 $336.5 $180.6 $41.5 Net Income from continui
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