itg investor presentation_06feb15
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SubtitleSubtitle
Second Quarter 2012 Earnings 1/2012
ITG InvestorOverviewFebruary 2015
FnamTitleEntity Name (only if required, otherwise delete)Arial size 11
© 2015 Investment Technology Group, Inc. All rights reserved . Not to be reproduced or retransmitted without permission. #020615-28285
SubtitleSubtitleInvestment Highlights
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International Growth
• ITG has achieved product parity with the U.S. in its three international operating regions (Europe, Canada and Asia Pacific)
• In 2014 International comprised 45% of total revenues and almost 60% of total pre-tax income.
Robust Balance Sheet
Competitive Platform
Strong Operating Leverage
• Operating model and disciplined expense management provide attractive opportunities for increased profitability
• Pre-tax margins on incremental revenue range from approximately 40% to 50% depending on operating region
• Unique, market-leading trading, analytical and research assets. Technology can be applied to new asset classes (FX, Fixed Income) and to improve market share in underpenetrated hedge fund segment
• ITG consistently ranks near the top of industry analyst surveys (Greenwich, Tabb, Aite) for products and client service
• Cash and equivalents of $275 million as of December 31, 2014
• Only $18 million in long-term debt
• Active share buyback program funded by free cash flow: $189 million in repurchases since 1Q10 have reduced share count by more than 21%
SubtitleSubtitleGlobal Product Groups
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Analytics
Platforms
Electronic Brokerage
Research, Sales & Trading
POSIT ® dark crossing in 34 countries
ITG Algorithms ® in 40 countries
ITG Smart Routing
POSIT FI in beta, launching in 1Q2015.
Data-driven research in consumer, TMT and energy sectors. High touch and portfolio trading.
ITG Triton ® broker-neutral execution management
ITG OMS ® and ITG Position Manager
ITG Net ® FIX connectivity to 650+ destinations
ITG TCA ® is the global market leader
Available for equities and foreign exchange
Pre-trade, real-time and post-trade analytics
SubtitleSubtitleGlobal Reach
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• ITG is headquartered in New York, with 1,087 employees worldwide
• 15 offices in 9 countries, including 9 trading desks
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International: Europe Driving Growth, Asia Pacific Turns Profitable
$18,770$19,336
$17,911 $17,947
$22,899
$26,384
$32,832
$31,097$31,677 $31,958
$11,397
$9,774
$12,134$12,610 $12,707
$2,321
$4,559$3,544
$3,203
$5,422$7,670
$10,742
$8,707
$7,518$7,036
-$256
-$1,729
-$208
$308 $105
-$5,000
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
4Q 13 1Q 14 2Q 14 3Q 14 4Q 14
Canada Revenue
Europe Revenue
Asia Pac Revenue
Canada Pre-tax
Europe Pre-tax
Asia Pac Pre-tax
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International Opportunities
Europe
• Ranked #1 among large firms polled by Greenwich Associates in Europe for best anonymity in a dark pool
• POSIT had over 12% share of European dark trading in 2014
• Full suite of ITG products now available in Europe; Algo trading and POSIT access in 21 EMEA markets
Canada
• Top 10 institutional broker by market share
• Ranked #1 by Greenwich in electronic
trading, portfolio trading and algorithms
• Operates MATCH NowSM broker neutral crossing system, Canada’s largest dark pool
• Leading Canadian CSA broker; ranked #1 by Greenwich
Growing Segment
• International operations comprised 45% of total revenues and nearly 60% of total pre-tax income in 2014
Asia
• New product offerings, secular shift towards electronic trading
• POSIT Marketplace launched in HK, Australia, Japan, Malaysia, Indonesia Singapore and the Philippines.
• Named Best Agency Broker by Asian Investor
• Move towards unbundling trading gaining traction with TCA research and CSAs
• Electronic trading 27%+ of Asia Pacific equity trading, according to Greenwich
SubtitleSubtitleITG at a Glance
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• Solid balance sheet, strong cash flow generation and active buyback program
• Unique, market-leading assets for execution, research and trade analysis
• Solid international platform with significant growth opportunities
• Disciplined expense management increases operating leverage, resulting in 40-50% pre-tax margins on incremental revenue
SubtitleSubtitle
Second Quarter 2012 Earnings 1/2012 10
Electronic Brokerage
Featuring: ITG Algorithms
POSITClean, global dark liquidity. Average US Daily Volume of 90m shares in 4Q 2014
ITG AlgorithmsSophisticated strategies for equities and futures
ITG Smart RoutingOne-point high-speed connection to liquidity
ITG NetGlobal FIX connectivity with trading insights
ITG Trading ServicesGlobal expertise across asset classes
Featuring: POSIT Alert
• High-quality block crossing
opportunities before they reach the
market. Average trade size is 37,000
shares.• #1 Clients’ Choice Top Five Dark
Pools, TABB US Institutional Equity
Trading Survey• #1 for Best Anonymity in a Dark Pool,
Greenwich Associates
• Ranked #1 market share by Tabb Group
and #1 speed and price improvement by
The Trade• Algo trading available in 40 countries. Offer
algorithms for equities, futures and options• ITG Dynamic Open named best algo by
Wall Street Letter
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Featuring:
ITG Investment Research
ITG Industry Investment ResearchData-driven insights on more than 300 companies in 20+ sectors in Energy, Consumer, Internet and TMT areas
ITG High Touch and Portfolio TradingHigh touch traders provide expert execution coupled with ITG Investment Research insights.
Seasoned portfolio traders provide high-touch and electronic list trading globally.
• Exclusive data provider relationships • Groundbreaking, proprietary methods
for analyzing massive amounts of data• Highly skilled, quantitative research
followed by seasoned, expert analysis• Data-drivem economic notes and macro
reports
Research, Sales & Trading
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Featuring: Triton
Platforms
Featuring: ITG Net ®
• FIX connectivity and management to more
than 650 global destinations.• Industry-leading tools for pre-, intra-day,
and post-trade cost estimating.• Execution transparency to evaluate trading
and broker performance against the market
and your peers
• Sophisticated, broker-neutral EMS with
global connectivity, aligned to clients’ interests
and trading styles.• Best EMS, Asian Investor, 2011, 2013• Best EMS, Forefactor Inc. (Canada), 2011
ITG Execution Management SystemsGlobal, broker-neutral and multi-asset EMSs
ITG Order Management SystemsITG OMS: Global, multi-asset enterprise OMSITG Position Manager: Dedicated Hedge Fund OMS
ITG NetProviding EMS and OMS FIX connectivity with approximately 9,000 global connections.
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Analytics
Featuring: ITG TCA®
• The leader in assessing trading
performance to reduce costs and
improve fund rankings. Includes competitive
comparisons through ITG Peer Analysis™.• Named Top TCA provider by Waters and
Financial News, 2013
ITG Trading AnalyticsAlpha preservation throughout the trading process
ITG Portfolio AnalyticsPortfolio modeling, optimization, and pricing
ITG Analytics ServicesInvestment process consulting to improve execution
Dynamic, interactive tool set to view real-time
market data, identify outliers, and forecast
long-term costs to improve performance during
a trade’s lifecycle.
Featuring: ITG Smart Trading Analytics
SubtitleSubtitleDisclaimers
•These materials are for informational purposes only, and are not intended to be used for trading or investment purposes or as an offer
to sell or the solicitation of an offer to buy any security or financial product. The information contained herein has been taken from
trade and statistical services and other sources we deem reliable but we do not represent that such information is accurate or
complete and it should not be relied upon as such. No guarantee or warranty is made as to the reasonableness of the assumptions or
the accuracy of the models or market data used by ITG or the actual results that may be achieved. These materials do not provide
any form of advice (investment, tax or legal). ITG Inc. is not a registered investment adviser and does not provide investment advice
or recommendations to buy or sell securities, to hire any investment adviser or to pursue any investment or trading strategy. All
functionality described herein is subject to change without notice.
•Broker-dealer products and services are offered by: in the U.S., ITG Inc., member FINRA, SIPC; in Canada, ITG Canada Corp.,
member Canadian Investor Protection Fund (“CIPF”) and Investment Industry Regulatory Organization of Canada (“IIROC”); in
Europe, Investment Technology Group Limited, registered in Ireland No. 283940 (“ITGL”) and/or Investment Technology Group Europe
Limited, registered in Ireland No. 283939 (“ITGEL”) (the registered office of ITGL and ITGEL is First Floor, Block A, Georges Quay,
Dublin 2, Ireland and ITGL is a member of the London Stock Exchange, Euronext and Deutsche Börse). ITGL and ITGEL are
authorised and regulated by the Central Bank of Ireland; in Asia, ITG Hong Kong Limited (SFC License No. AHD810), ITG Singapore
Pte Limited (CMS Licence No. 100138-1), and ITG Australia Limited (AFS License No. 219582). All of the above entities are
subsidiaries of Investment Technology Group, Inc. MATCH NowSM is a product offering of TriAct Canada Marketplace LP (“TriAct”),
member CIPF and IIROC. TriAct is a wholly owned subsidiary of ITG Canada Corp.
13Disclaimers
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