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About ICAP

ICAPICAP is a financial services company acting as a specialist is a financial services company acting as a specialist intermediary for Capital Markets financial and commodity intermediary for Capital Markets financial and commodity

products. The range of markets we cover include OTC products. The range of markets we cover include OTC derivatives, fixed income securities, money market derivatives, fixed income securities, money market

products, foreign exchange, energy, credit and equity products, foreign exchange, energy, credit and equity derivatives.derivatives.

In our role, we facilitate execution amongst the worldIn our role, we facilitate execution amongst the world’’s s largest investment and commercial banks to match largest investment and commercial banks to match

counterparties in transactions. We provide access to counterparties in transactions. We provide access to ““liquidityliquidity”” both in voiceboth in voice--assisted fashion in most financial assisted fashion in most financial

and commodity products and/or offer electronic and commodity products and/or offer electronic capabilities so our clients can directly access a subset of capabilities so our clients can directly access a subset of

these markets. these markets.

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ICAP’s Role in Capital MarketsICAPICAP acts as an intermediary to match buyers acts as an intermediary to match buyers and sellers in various financial and commodity and sellers in various financial and commodity

products.products.

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ICAP: The global OTC exchangeHighlightsHighlights

Source: ICAP

ICAP Revenue (£m)ICAP Revenue (£m)

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The company is the 108th largest publicly listed company on the London Stock Exchange

With a market capitalisation of over US$3.6bn, ICAP has the strongest financial position of any inter-dealer broker.

Our goal is to achieve 35% market share of the inter-dealer market over the next 3-5 years, with a significantly higher proportion of our business coming from electronic broking.

We aim to achieve this by a combination of organic growth in existing and new markets and through selective acquisition

Diversification of revenues, FY ended 3/31/05Diversification of revenues, FY ended 3/31/05

Source: ICAP

Securities broking 41%

Derivatives and money broking

39%

Energy broking 6%

Electronic broking 11%

Information services 3%

ICAP is a growth business in a growth market.

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ICAP: The global OTC exchangeHighlightsHighlights

Source: Bloomberg Share price rebased to 100

Historical Stock price performanceHistorical Stock price performance

ICAP is the world’s largest voice and electronic inter-dealer broker.

It is active in the wholesale market for OTC derivatives, fixed income securities, financing products, foreign exchange, energy, credit and equity derivatives

The firm intermediates an average of $1,000bn of transaction volumes each day, representing 28% of the entire global inter-dealer market.

The firm has been a pioneer in electronic broking and the integration of voice and electronic channels. Today 50% of its volumes are electronic.

With more than 3,000 staff, ICAP has a strong presence in London, New York and Tokyo, together with a local presence in 20 other financial centres

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What are our Major Markets?Market Growth: International Bonds And NotesAmounts Outstanding (US$ billions) Market Growth: International Bonds And NotesAmounts Outstanding (US$ billions)

Interdealer Broking ServiceInterdealer Broking Service

Wholesale intermediaryAnonymity / execution / liquidity / information / price discoveryWhere settlement systems are established, operates as “matched principal”In markets where credit risk exists between counter parties, “name give up”Similar to an exchange but more flexibility

Market Growth: Interest Rate Swaps Outstanding (US$ bn)Market Growth: Interest Rate Swaps Outstanding (US$ bn)

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ProductsProducts

OTC derivatives - Interest Rate Swaps and OptionsFixed income - government, agency, repo, mortgage, corporate, high yield, bankruptcy, emerging marketsMoney markets – deposits, CD’s, FX Commodities - electricity, gas and oilCredit derivativesEquity derivativesMarket Data

*Figures supplied by BIS

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Corporate Strengths

Consistent strategy for several yearsConsistent strategy for several yearsA strong market position with significant A strong market position with significant competitors in several key marketscompetitors in several key marketsExperienced management teamExperienced management teamDeveloping an integrated voice and Developing an integrated voice and electronic broking business electronic broking business Creating the leading global Creating the leading global eBrokingeBrokingfranchise franchise

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Profit & Margin Profile By Business Activity

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: profit is defined as profit before tax, amortisation and impairment of intangibles, exceptional items, interest, and excludes share of profit/(loss) of associates.

: bar represents profit, % is margin.

Securities broking

Derivatives and money broking

Energy broking

Electronic broking

Information services

£m

15.3%

12.7%19.8%

22.1%

22.6%

31.4%23.6%

15.6%

57.0%61.8%

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What Drives ICAP’s Growth?

Interest rate volatility Interest rate volatility Increased commitment of risk capital to the Increased commitment of risk capital to the interest rate, energy and FX markets by interest rate, energy and FX markets by the hedge funds and banks the hedge funds and banks Growth in bond issuance, driven by Growth in bond issuance, driven by national deficit funding or capital raising by national deficit funding or capital raising by corporate and financial institutions corporate and financial institutions Market share changes from industry Market share changes from industry consolidationconsolidationAcquisition opportunitiesAcquisition opportunities

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Overall market growth rates 2004/2005

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Interest Rate Swaps

Exchange traded derivatives

FX Options

Interest Rate Options

FX Forwards

OTC Equity derivatives

Commodity derivatives

Credit Default Swaps

Source: ISDA, BIS%

140%

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E-Broking Franchise

Successful integration of Successful integration of BrokerTecBrokerTecacquisitionacquisitionExtensive electronic broking footprintExtensive electronic broking footprintIntegration with banksIntegration with banks’’ systems systems Significant economies of scale, Significant economies of scale, leverage potentialleverage potentialSignificant experience within Significant experience within management group management group –– running both running both voice and electronic liquidity poolsvoice and electronic liquidity pools

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Electronic business

Average Electronic Broking Volumes All Fixed Income Products ($billion/day per half year)

Average Electronic Broking Volumes All Fixed Income Products ($billion/day per half year)

HighlightsHighlights

Electronic volumes up 32% year on year to US$473bn/day

Market share in US Treasuries ~58%

Market leader in Repo

US$ 177bn in Europe

US$ 185bn in North America

Launch of:

Canadian Treasuries

Corporate Repo

iForwards volumes tripled

Agreement with Monte TitoliSources: BrokerTec, ICAP, estimates from eSpeed and MTS including some actual data from websites - counting only trades executed electronically. B to B only.

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$billion/day

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Candidates Required

Seeking qualified individuals who enjoy a Seeking qualified individuals who enjoy a challenging, high pressured, dynamic team challenging, high pressured, dynamic team environment. environment.

ICAPICAP = Customer Centric, Opportunity = Customer Centric, Opportunity Seeking, Cooperative Spirit, Innovation, Seeking, Cooperative Spirit, Innovation, Success Success

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ICAP Graduate Program

Graduate Program ICAP invites applications for the Graduate Training Program.

Selection CriteriaWe are looking for ambitious, entrepreneurial, team-spirited graduates with the drive to succeed in a challenging, fast-paced and highly pressurized environment. We welcome degrees in any discipline however individuals must possess exceptional numeric, social, interpersonal skills and have a strong interest in financial markets. Any previous broking, sales or trading experience would be a strong advantage.

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The Training ProgramThe Training Program

Aimed at individuals who wish to pursue a career in broking. We provide a structured program which currently lasts 8

weeks. Trainee’s will have hands-on experience within OTC derivatives, fixed income securities, money market products, FX, energy, credit and equity derivatives in order to gain first-hand knowledge of the business activities in each area.

This will be complemented by formal classroom based training courses designed to enhance the Trainee's knowledge and understanding of the financial markets further.

On successful completion of the Training Program individuals will be assigned to a business that best matches the trainee’s skills, attributes and interests with the needs of the business.