#1T MEUM готстим PACTUM London Stock Exchange Group Investor Relations Presentation March 2020#2Strong financial performance in 2019 Total income +8% £2,314m (2018: £2,135m) Adjusted EBITDA +19% £1,265m (2018: £1,066m) London Stock Exchange Group Gross profit +10% £2,104m (2018: £1,908m) AEPS +15% 200.3p (2018: 173.8p) ¹Operating expenses before depreciation and amortisation DHEIGHESHIN London Stock Exchange Group Underlying operating expenses¹ +1% £839m (2018: £834m) Full year dividend +16% 70.0p per share (2018: 60.4p) Page 2#3London Stock Exchange Group Income by segment - growth in all core segments LSEG 2019 Total Income by segment C £2,314m Double-digit growth FTSE Russell 10% FTSE Russell revenue up 10% (up 6% at organic constant currency) London Stock Exchange Group 39% 39% Information Post Trade services 18% Capital Markets 1% Other 3% Technology LCH 15% LCH OTC clearing revenue up 15% (up 13% at constant currency) Continuing operations Revenue Information Services¹ Post Trade Services LCH Post Trade Services CC&G and Monte Titoli Capital Markets Technology Other revenue Total revenue Net treasury income through CCP businesses Other income Total income Cost of sales Gross profit 2019 versus 2018 Twelve months ended 31-Dec 2019 £m 902 550 103 426 66 9 2,056 255 3 2,314 (210) Organic and constant currency 2018 Variance variance £m 2,104 841 487 102 407 65 9 1,911 218 6 2,135 (227) 1,908 % 7% 13% 1% 5% 2% 8% 17% 8% (8%) 10% 1Organic growth is calculated in respect of businesses owned for at least 12 months in either period and so excludes Beyond Ratings 5% 13% 2% 5% 1% Capital Markets: Primary Markets revenue increased by c.£32 million in H1 2019 due to a change in estimate relating to IFRS 15. This is due to a reduction in the length of time initial admissions and further issue revenues are required to be recognised. Under this new treatment, it is estimated the impact on Primary Markets will be an increase in revenue of £1 million on an annual basis Page 3 % 6% 16% LCH cost of sales reduced by over £30 million due to an updated SwapClear agreement with partner banks, announced at Q1 2019 7% 1 (8%) 9%#4Income growth Organic growth across core businesses and NTI drives income LSEG income (£m) 2,135 2018 23 FX 2,158 36 2018 adjusted for income FX London Stock Exchange Group 120 Net treasury Organic Inorganic Note: Inorganic includes income for businesses held for less than 12 months in either period: Beyond Ratings Organic includes £32 million IFRS15 benefit 2,314 2019 London Stock Exchange Group Net Treasury Income LCH NTI up 18% to £206m CC&G NTI up 14% to £49m Cash collateral driven by: Volumes - Volatility Income driven by Quantum of cash margin - Expansion of counterparties - Active asset allocation Page 4#5Operating expenses well controlled Expenses (before depreciation) up 1% Total operating expenses up 7% LSEG expenses (£m) 969 2018 8 FX 977 (4) Net 2018 adjusted for underlying FX Operating expenses London Stock Exchange Group 65 Net underlying - D & A 1 Inorganic 1,039 2019 London Stock Exchange Group Operating expenses before depreciation and amortisation: £839m (2018: £834m) Headcount reduction programme in 2019: £17m achieved; programme continues Note: Excluding amortisation of purchased intangibles, non-underlying items and cost of sales Inorganic includes costs for businesses held for less than 12 months in either period: Beyond Ratings Net underlying operating expenses includes a £31 million IRFS 16 benefit, Net underlying D&A includes £26 million IFRS 16 impact - Organic investment for growth and operational improvements driving depreciation - 2019: £200m (2018: £135m) Page 5#6Operating expenses - looking ahead Continuing to invest for growth, efficiency and resilience with good cost discipline Looking Ahead Operating Expenses Growth - Continued investment for growth and efficiency-will drive depreciation Efficiency - £30m cost reduction previously announced Q1 2019 - Net cost saves £17m in 2019. Expect to achieve run rate savings of £30m by the end of 2020 Resilience - Ongoing investment in technology Cost discipline - Focus on control of Operating expenses across Group London Stock Exchange Group Depreciation Expect c.£235m in 2020 (IFRS 16 Leases - 2020 impact c.£29m) Depreciation (£m) 135 32 2018 200 26 39 2019 Tax rate Reported tax rate 2019: 23.7% - Expect 22% -23% for 2020 London Stock Exchange Group 235 29 32 2020 est IFRS 16 Growth Depreciation previous year Page 6#7Investment for growth continuing Investment expense 2020: c.£250m of which Capex c.£220m Capex (£m) 194 2018 195 2019 220 2020 est London Stock Exchange Group Investment expense 2020 O 34% Investment for growth 66% Operational Investment for growth and efficiency Index & Analytics - digital, multi-asset, global - Trading venue enhancements LCH - Multi-asset class clearing and risk platform - - CRM¹ systems - increasing efficiency Property consolidation Operational - London Stock Exchange Group Data centre consolidation Cloud migration Ongoing investment in technology upgrades and investment in systems, information security (cyber) and resilience ¹Customer Relationship Management Page 7#8Strong financial position Leverage ¹ 1.7 1.2 1.1 In 31 Dec 2015 256 31 Dec 2016 2020 Debt maturity profile (£m) Graph excludes multi-currency bridge facility 299 2021 485 115 30 Jun 2017 2022 ■ Drawn - Commercial paper 1.7 2023 31 Dec 2017 451 149 426 2024 Bonds London Stock Exchange Group 1.6 30 Jun 2018 2025 1.8 31 Dec 2018 2026 1.7 30 Jun 2019 424 2027 Drawn - Revolving credit facilities 1.4 31 Dec 2019 2028 424 2029 Undrawn London Stock Exchange Group 31 December 2019 Operating net debt £1.8bn (30 June 2019: £1.9bn) Net debt: adjusted EBITDA 1.4x (excluding £1.1bn restricted cash) Committed undrawn credit lines of c.£680m to 2024 Bridge facility to potentially refinance debt at completion of the acquisition, available in two tranches of $9.325bn and €3.580bn Ratings LSEG: S&P long term A with negative outlook and Moody's A3 with negative outlook LCH LTD & SA: S&P long term AA- with watch negative outlook Potential one or two-notch downgrade in long-term rating on completion of Refinitiv transaction 1 Pro forma as if acquisitions held for the complete year Page 8#9Achievement of 2017-19 financial targets Target FTSE Russell Double-digit growth to continue 2017-2019 LCH - OTC Double-digit growth to continue 2017-2019 LCH Adjusted EBITDA margin growth - approaching 50% by 2019 (2016: 35.6%, 2017: 43.6%, 2018: 45.9%) Performance London Stock Exchange Group London Stock Exchange Group 2019: up 10% Up 6% on constant currency basis 2019: up 15% Up 13% on constant currency basis 2019: 54.9% Original target: c.55% Group adjusted EBITDA margin - 2019: 54.7% Page 9#10T MEUM готстим PACTUM Business Review#11Successfully executing our strategy Continued focus on delivering shareholder returns while investing for the long-term Capital Markets Enhance and expand our multi-asset class capital markets capabilities Information Services Develop our data and analytics products and capabilities to become a global leader - 340 new equity indices launched in 2019 Fixed Income and Multi-Asset (e.g. Climate WGBI) - - Strategic data-oriented acquisitions (e.g. Beyond Ratings) Utilise our proprietary datasets to develop cross divisional products Continue to innovate across multiple asset classes (e.g. Sustainable Bond Market, Curve Global, Turquoise NYLON) Increasing participation in private capital raising (ELITE including Scotland and Americas) London Stock Exchange Group - Supporting retail activity onto our markets Operating across the financial markets value chain Technology and Operations Post Trade Provide a resilient, stable and efficient post-trade solution to manage risk for customers - London Stock Exchange Group - New LSEG Post Trade division will deliver greater customer benefits through collaboration and coordination across LCH, CC&G, Monte Titoli and Una Vista on an Open Access basis Development of a strong Group operating model and culture of collaboration, operational and technological excellence Continuous investment in technology infrastructure, adopting a Cloud strategy Group-wide collaboration, creating efficiencies and innovative products Continued use of data and analytics to help our customers to effectively manage risk (e.g. Swap Agent) Page 11#12Information Services LSEG 2019 Total Income by segment £2,314m 39% Information Services - 28% FTSE Russell Highlights - $765bn ETF AUM benchmarked to FTSE Russell indices 11% Real time data and Other - Launched Climate WGBI, based on risk modelling from Beyond Ratings Pensioenfonds Detailhandel selected a custom FTSE Russell ESG benchmark to align with the UN's Sustainable Development Goals Inclusion of China A shares in FTSE global equity benchmarks London Stock Exchange Group Growth drivers Core Product: Support core product offering with value-added content - Sustainable Investment: Development of specialist ESG datasets and IP - Fixed Income & Multi-asset: Continued development and expansion of expertise and coverage within multi-asset Smart Beta: Further develop factor offering across asset classes to help investors implement more complex investment strategies Analytics: Support investor needs to build, manage and analyse complex portfolios and investment processes Growth in Information Services income £841m 155 94 219 373 London Stock Exchange Group 2018 £902m 156 97 231 418 2019 Other Real Time Data FTSE Russell - Asset based FTSE Russell - Subscription ¹Mergent and some other minor items (previously reported in FTSE Russell) are now included in Other for both periods Page 12#13Information Services Ecosystem Market participants use indices, data and analytics throughout the investment process Index Analytics Data Solutions represents an investment theme transforms data into valuable insights informs investment design Product Development ככ BEYOND RATINGS standards for positive finance Real Time Data ICB Investment Decision Making London Stock Exchange Group Asset Allocation and Research M MERGENT by FTSE Russell Implementation FTSE Russell :כ BEYOND RATINGS standards for positive finance Trading Lifecycle Post-Investment Analysis The Yield Book by FTSE Russell Real Time Data London Stock Exchange Group Risk/ Performance Analysis BEYOND RATINGS standards for positive finance Supports client needs across asset classes throughout the investment process Reporting and Administration SEDOL LEI Page 13#14Capital Markets LSEG 2019 Total Income by segment £2,314m 18% Capital Markets 6% Primary Markets Highlights 109 new admissions, of which c.25% international 12% Secondary Markets Borsa Italiana had the highest number of new listings in Europe in 2019 MTS Repo: Value traded up 30% to €113tn Curve Global: 5.7m lots traded in 2019, up 78% London Stock Exchange Group Key initiatives MTS: 21 countries currently operating on MTS Cash markets and expanding - Turquoise: Continued innovation and Europe's leading dark pool CurveGlobal: Supporting alternative reference rate transition Shanghai-London Stock Connect: Expand our global reach and deepen partnerships Sustainable Finance: Green Economy Mark and Sustainable Bond Market launched in 2019 - - Growth in Capital Markets income £407m 125 169 113 2018 12019 includes c.£32 million benefit from IFRS15 £426m 124 151 151 London Stock Exchange Group 2019 Secondary Markets - FI, derivatives & other Secondary Markets - Equities ■ Primary Markets Page 14#15Sustainable finance leadership London Stock Exchange Group is uniquely positioned to support and facilitate sustainable and low carbon solutions across the financial markets ecosystem Providing access to capital Integrating sustainability into investment processes - LSEG acquired Beyond Ratings (specialists in fixed income and government bond ESG solutions) - FTSE Russell launched Climate Risk-Adjusted World Government Bond Index (Climate WGBI) Launch of FTSE SDG Aligned Index Launch of FTSE TPI Climate Transition Index in collaboration with TPI and the Church of England Pensions Board LSEG environmental performance in 2019 LSEG was one of the first companies in the financial services sector to commit to a long-term science-based carbon reduction target London Stock Exchange Group London Stock Exchange Group Launch of the Sustainable Bond Market Launch of the Green Economy Mark, recognising 75 companies with 50% or more green revenues A record 79 new ESG ETFs listed on our markets in 2019 Borsa Italiana launched a new segment of its ExtraMOT market for Italian SMEs Over a third of the £6.9bn total capital raised by investment funds in 2019 raised by green funds 41% Reduction in our absolute carbon footprint Page 15#16Post Trade LSEG 2019 Total Income by segment £2,314m 39% Post Trade 33% Post Trade LCH 6% Post Trade Italy Highlights SwapClear: $1,229tn total notional cleared, up 14%; 1.7m client trades cleared up 13% Compression: up 19% to $920tn ForexClear: Launched clearing for deliverable FX forwards; membership increased to 34 RepoClear: nominal cleared up 7% to €106tn; Successfully migrated a large majority of Euro denominated debt into LCH SA - Acquired a minority 4.92% stake in Euroclear London Stock Exchange Group Key initiatives SwapClear: Leading global clearing service providing margin and capital efficiencies to members and clients - supporting a number of alternative reference rates - - - ForexClear: Strong early stage growth, building on established position in NDFs and new deliverable forwards clearing RepoClear: Enhanced choice and efficiency with clearing in LCH SA SwapAgent: Compression and efficiency tools to extend benefits to the uncleared market - surpassed $1tn in total notional registered Monte Titoli: Focus on efficiency with digitalisation programme Growth in LCH income £662m 83 175 136 268 2018 £756m 103 206 140 London Stock Exchange Group 307 2019 Other INTI Non-OTC OTC Page 16#17SwapClear and ForexClear SwapClear Continued global leadership in OTC rates clearing 90%+ Share of clearing notional value (member and client) SwapClear Notional cleared by currency $1,077tn 129 135 265 549 2018 +14% Growth in notional cleared in 2019 to over $1.2 quadrillion USD EUR London Stock Exchange Group GBP +13% Growth in number of client trades cleared in 2019 to 1.7 million $1,229tn 173 137 294 625 2019 Other ForexClear Expanding beyond position as the leading NDF clearing platform +5% Growth in notional cleared in 2019 to $18.0 trillion 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 ForexClear Notional cleared $tn Jan Mar May US UMR EU UMR 2nd phase UMR 3rd phase UMR Jul Sep $61bn 34 Client notional cleared (2018: $8 billion) 2016 London Stock Exchange Group Nov Jan Mar May Jul Sep NOV Jan 2017 ForexClear members in 2019 (2018: 32) 2018 4th phase UMR Mar May Jul Sep Nov Jan Mar May Sep Nov Jan 2019 2020 1 Source: ClarusFT January 2019 Uncleared Margin Rules phase-in began in the US, September 2016 and Europe, February 2017, further phases have been introduced each September since and will continue until 2021 Page 17#18ForexClear - The FX Opportunity Economic incentives increasingly driving FX products into scope for central clearing LCH well positioned to address capital and margin challenges within the vast $6.6tr daily FX market Instrument Category NDFs Vanilla Options FX Swaps & Deliverable Forwards NDOS Spot Currency Swaps Exotics Average Daily Turnover (1) $258bn $244bn $4,200bn $45bn $1,987bn $108bn $5bn LCH offering Live today Live today Deliverable Forwards live today Aim to launch early 2020 (2) Some clears as FX Option hedges Shorter-dated Currency Swaps are likely to clear in time alongside FX swaps Potential to clear some first generation exotics is growing as impediments fall away London Stock Exchange Group Note: (1) Source: BIS Triennial Central Bank Survey Global foreign exchange market turnover in 2019 (Sep 2019) and estimated breakdown of FX Options using SDR traded volumes (2) New products subject to regulatory approvals Current Forex Clear offering 2020 ForexClear focus 2021+ likely ForexClear focus Page 18#19Post Trade From January 2020, we aligned our Post Trade businesses in one division. The new Post Trade division includes LCH Group, CC&G, Monte Titoli and UnaVista, our trade reporting business that previously sat within Information Services. Post Trade £ millions OTC SwapClear, Forex Clear & CDS Clear Non OTC - Fixed income, Cash equities & Listed derivatives Other Total LCH revenue Clearing Settlement, Custody & other Total Post Trade Italy revenue Una Vista Total Revenue Net treasury income through CCP: LCH CC&G Total income Cost of sales Gross profit London Stock Exchange Group 2019 Q1 76 34 24 134 11 14 25 13 172 48 11 231 (35) 196 Q2 72 35 25 132 11 15 26 12 170 48 13 231 (30) 201 Q3 80 36 28 144 11 16 27 10 181 53 12 246 (35) 211 Q4 79 35 26 140 10 15 25 12 177 57 13 247 (22) 225 2019 307 140 103 550 43 60 103 47 700 206 49 955 (122) 833 LCH NTI 22% Una Vista 5% Monte Titoli 6% CC&G Clearing 4% CC&G NTI 5% London Stock Exchange Group Total income: £955m LCH Other 11% LCH OTC 32% LCH Non-OTC 15% Page 19#20ST готстим MEUM PACTUM Creating a Financial Markets Infrastructure Leader of the Future Acquisition of Refinitiv#21Compelling strategic rationale Transforms LSEG's position as a leading global financial markets infrastructure group 2 3 1 Ability to benefit from global growth opportunities with greater range of leading businesses and enhanced strategic balance London Stock Exchange Group Significantly enhances LSEG's customer proposition in data and analytics Combination of valuable datasets with extensive distribution and IP capabilities, boosting revenue opportunities Creates a global multi-asset class capital markets business Adds high-growth execution venues in the two largest traded asset classes: FX and fixed income Deepens and expands our shared core principles of customer partnership and open access 4 Continued partnership with customers to deliver innovative solutions across the financial markets value chain Compelling financial profile: Sustainable growth and substantial synergies - In excess of £350m cost and £225m revenue run rate synergies 5 - Revenue¹ CAGR of 5-7% targeted over the first three years post completion with c.70% recurring subscription-based revenue - Over 30% adjusted EPS accretion in the first full year post completion and increasing in years two and three 1 Revenue excludes recoveries and includes treasury income and other income London Stock Exchange Group Page 21#22Transforms LSEG's position as a leading financial markets infrastructure group LSEG REDI London Stock Excherge Tradeweb Borsa Italiana Turquoise ALPHADESK BETA ELITE AIM FX Matching LCH Equities & The Marke Refinitiv FXall capital raising & CC&G CURVEGLOBAL FI & FX markets MTS formation xecution Monte Titoli Clearing settlement SEDOL/LEI MMERGENT IBES by Open data platform and technology London Stock Exchange Group Risk management and Post t trade services Workflow & reporting solutions UnaVista Data & research Investmen and research tools LIPPER Data Stream Risk & financial solutions EDD TREP ΕΙΚΟΝ Index, 8 nalytics Refinitiv Data Platform WM / Reuters FX benchmark WORLD-CHECK FTSE Russell The Yield Book syst DEGHECKIN London Stock Exchange Group Refinitiv complements LSEG across the financial markets value chain - Trading venues generate proprietary multi-asset class data Data and analytics enable trading and investment decisions Provides proprietary content and extensive data management capabilities Enables expansion of fixed income and ESG index business Development of high value analytics Unlocks value in post trade data Creates a multi-asset class capital markets offering Adds high-growth execution venues in the two largest traded asset classes: FX and fixed income Complements existing capital formation and execution business Underpinned by our shared core principles of Open Access and Customer Partnership Page 22#23Creates a new global financial markets infrastructure leader London Stock Exchange Group A leading global financial markets infrastructure business Successful open access philosophy and customer partnership approach - Systemically important, world class businesses serving global customer base - Leading global OTC clearer with over $1,200tn of notional cleared in 2019: LCH - Leading global multi-asset index company with $15tn in AUM and $765bn ETF AUM: FTSE Russell - Leading European equities trading business - Strong track record of top-line organic growth and strategic M&A 2019 Revenue: £2.3bn ¹ 2019 Adj. EBITDA: £1.3bn London Stock Exchange Group 1 GLOBAL SCALE AND GEOGRAPHIC DIVERSIFICATION 2 WORLD CLASS DATA CONTENT, MANAGEMENT AND DISTRIBUTION CAPABILITY 3 MULTI-ASSET CLASS CAPITAL MARKETS FUNCTIONALITY London Stock Exchange Group REFINITIV - A leading global provider of data, analytics and financial markets solutions - Open platform promoting partner community, solutions and efficiency Global reach and significant customer connectivity Best-in-class capabilities in data collection, management and distribution - Leading trading venues in FX and fixed income: FXall and Tradeweb 150,000 data sources, over 10,000 data partners and 24,000 developer community - Significant recent investment to accelerate growth High quality, highly recurring subscription- based revenue base 2019 Revenue: £4.9bn 2, 3 2019 Adj. EBITDA: £1.7bn ³ ¹Revenue includes treasury income and other income 2Revenue includes recoveries ³Refinitiv's performance for the 12 months to 31 December 2019 has been translated from USD to GBP using an FX rate of 1.28 Page 23#24Creates a global footprint with significant growth opportunities 2018 Revenue diversification 1.கட் - 2.1bn (1) London Stock Exchange Group 40% 32% UK Rest of World 28% North America £4.6bn (2) REFINITIV 15% 45% UK Rest of World 40% North America Growth opportunities in existing and new geographies Growth and scale in the US - the world's largest financial market Expands LSEG's existing position in Asia, particularly China Growth in emerging markets where Refinitiv has a significant presence Global servicing capability aligned to customers' global operating model Note: (1) LSEG revenue includes treasury income and other income, LSEG splits are based on income diversity by currency as presented on page 37 of LSEG's 2018 Preliminary Results presentation (2) Refinitiv revenue includes recoveries. Refinitiv's performance for the 12 months to 31 December 2018 has been translated from USD to GBP using an FX rate of 1.34 London Stock Exchange Group £6.8bn Combined 23% 41% UK Rest of World 36% North America Page 24#25A leading financial markets data and infrastructure provider serving over 40,000 customers in approx. 190 countries Data, distribution, analytics and workflow DATASTREAM ΕΙΚΟΝ WM/REUTERS FX BENCHMARK LIPPER IBES FXT Financial, company, economic, commodities, deals and 'alternative data' Content workflow and analytics Benchmarks and indexes, pricing, reference and entity data Strategic workflow solutions such as FXT, REDI, Alpha Desk, etc. Ownership of proprietary data content (e.g. Lipper, ESG, financial crime, venue data) Messaging and collaboration services £3.2bn revenue in 2018 (2) (3) Leading data & analytics business with significant global reach and connectivity FXall - BETA Venues FX Matching Tradeweb REDI Refinitiv Data Platform (1) Open data platform and core capabilities in data collection, integration, distribution & management to power financial markets FX venues - FXall, Matching Fixed income venues - Tradeweb BETA trade processing in Wealth £0.8bn revenue in 2018 (2)(3) Leading FX, fixed income and multi-asset trading venues Note: (1) Refinitiv Data Platform was formerly known as Elektron Data Platform (2) Revenue excluding recoveries (3) Refinitiv's performance for the 12 months to 31 December 2018 has been translated from USD to GBP using an FX rate of 1.34 (4) Risk includes Risk & Other London Stock Exchange Group - Risk WORLD-CHECK CONNECTED RISK EDD Anti-financial crime data and solutions KYC/AML financial crime data and solutions Legal entity identifiers Enhanced due diligence services for customer and supplier screening £0.3bn revenue in 2018 (2)(3)(4) Leading Risk business providing innovative products to corporates Page 25#26Refinitiv's data and analytics operating model Core capabilities in data content and data management Refinitiv Data Platform (1) Data aggregation, management, distribution and enrichment Proposition, development and client servicing business model and strong global operating centres Public data Proprietary data Partnerships Third party data 150,000 data sources, over 10,000 data partners, 400,000 end users and consumed by machines globally (24,000 developer community) Note: (1) Refinitiv Data Platform was formerly known as Elektron Data Platform Open platform delivering through five distribution channels Desktop 1 2 Data feeds 3 Cloud Partnerships 5 On Premise 40,000 customers across 4 key communities Trading Investment and Advisory Wealth London Stock Exchange Group Risk Sell-side trading desks Hedge funds Asset managers Treasury management Risk management Investment management Portfolio management Research Capital raising M&A advisory Wealth advisory Wealth operations Wealth aggregators Wealth distributors Financial crime detection. Compliance & fraud prevention Entity validation & verification Page 26#27Successfully transforming Refinitiv's data business and accelerating topline growth Expansion of data content Enhanced platform capabilities Expansion into emerging and frontier markets Salesforce initiatives Strategic Initiatives Number of initiatives underway to further expand Refinitiv's content and analytics capabilities Refinitiv's desktop proposition is undergoing significant change in response to challenging levels of historic growth in certain product areas Investment in content sets, workflow solutions and partnerships in emerging and frontier markets Enhancing the effectiveness and specialism of Refinitiv's c.2,500 sales FTES DHEIGHETE PACKIN Illustrative Actions London Stock Exchange Group Entered into agreements with MarketAxess and Tradeweb to distribute fixed income data ✓ Developing products in growth areas such as alternative data platforms and Asian and emerging markets data and analytics Significant upgrade to Refinitiv Workspace (¹) to deliver a high performance, web-based platform Over $75m invested since October 2018 Beta testing of the new platform has been met with positive user feedback ✓Launched cloud-based delivery for Asian and Central and South American clients ✓Launched BRI Connect, a suite of data tools for analysing investment opportunities from China's Belt and Road initiative (2) Planned reduction of organisational layers and building of specialist teams better able to support customers Certain products based on customer usage of data rather than the traditional per-terminal model, better serving the needs of individual customers Note: (1) Refinitiv Workspace is a replacement for the Eikon Platform (2) China's Belt and Road Initiative focuses on building significant infrastructure projects across Asia, Europe, and Africa. Officially launched in 2013, it is already considered the largest investment program in history, accounting for more than $500 billion USD of spend in infrastructure projects across more than 70 countries Page 27#281 Multiple engines to drive revenue growth 5-7% revenue (1) CAGR targeted over the first three years post completion Continued performance of LSEG's current business Continued growth in FTSE Russell and Post Trade supported by structural drivers - Maintain customer partnership approach to drive innovation Continued strong growth of Refinitiv's FX trading platforms, Tradeweb and Risk 3 - High growth execution venues in FX and fixed income FESTE - Benefits from ongoing electronification - Regulatory-driven growth in KYC and Risk services London Stock Exchange Group Accelerating revenue growth of Refinitiv's Data, Distribution, Analytics and Workflow businesses 2 - Expansion of content and platform upgrades following recent investment - - Increased salesforce and customer service effectiveness after reorganisation - A number of ongoing initiatives including on- demand data services, cloud distribution, etc. 4 Realisation of target revenue synergies - - Cross-sell of products and services to a complementary customer base - - Creation of new and enhanced offering combining with best-in-class data management capabilities Note: (1) Combined business targeting delivery of revenue CAGR of 5-7% over the first three years following completion of the transaction. Revenue excludes recoveries and includes treasury income and other income Page 28#29Delivers annual run rate revenue synergies in excess of £225m O Synergies Year 3 Year 5 60% Cross-Selling & Distribution (1) 30% Enhanced Products (1) 10% New Products (1) Target run rate phasing Note: (1) Synergy breakdown rounded to the nearest tenth (2) Revenue includes treasury income, other income and recoveries 60% 100% One-time cash costs to achieve: c.£180m London Stock Exchange Group Cross-selling and distribution Distribution of Yield Book analytics via Refinitiv platform Distribution of Refinitiv pricing and reference data to LSEG index customers LSEG index distribution via Refinitiv platforms Utilise Refinitiv's global salesforce to introduce LSEG services to new customer segments such as wealth management advisory and corporates Enhanced products Enhanced LSEG issuer services through addition of Refinitiv data Enhanced LCH valuation, margin and capital optimisation tool using Refinitiv data Refinitiv indexes and benchmarks (including WM/Reuters FX benchmarks) enhanced through LSEG index expertise New products Extended LSEG ESG index and analytics services based on Refinitiv data Extended suite of LSEG fixed income indexes utilising Refinitiv pricing and reference data 5 year run rate revenue synergies represent c.3% of combined 2018 revenue (2) Page 29#30Aligned efficiency initiatives support annual run rate cost synergies in excess of £350m Synergies Year 1 Year 3 Year 5 50% Corporate & Employee- Related Efficiencies (1) 30% Technology (1) 20% Property & Other (1) Target run rate phasing 25% 70% 100% One-time cash costs to achieve: c.£550m (2) (1.6x run rate) Note: (1) Synergy breakdown rounded to the nearest tenth (2) The majority of the cost to achieve synergies is expected to be incurred in the first two years following Completion London Stock Exchange Group DIEGH FREQUE Cost synergies delivered through wide ranging efficiency programme: Corporate and employee-related efficiencies: Removing duplication and leveraging wider geographic footprint, while continuing to invest in growth; delayering, capturing associated flow-through to variable compensation - Technology: De-duplication of services and applications while adopting the best of both organisations' capabilities and maintaining resiliency, data centre rationalisation Property and other: Consolidation of property footprint in common locations, seeking economies of scale on supplier contracts, depreciation benefits from technology and property de-duplication These synergies are separate from and in addition to Refinitiv's previously announced and ongoing $650m cost savings programme LSEG and Refinitiv have a strong track record of execution and creation of shareholder value Page 30#31Transaction update - good progress - - - Overwhelming shareholder support with >99% voting in favour Regulatory and anti-trust workstreams progressing Transaction remains on track to close in H2 2020 Integration planning. David Shalders appointed Chief Integration Officer - brings >30 years' experience in integration, technology and operations in financial services Integration Management Office established Strong working partnership with Blackstone who bring insight on Refinitiv and continued focus on efficiencies 18 workstreams established each with an LSEG and Refinitiv executive sponsor David Schwimmer and David Craig lead sponsors for cultural alignment workstream Fortnightly integration planning meetings between LSEG and Refinitiv executive leadership teams London Stock Exchange Group Refinitiv cost-saving programme - $520m run-rate savings achieved at end of 2019, and on track to achieve $650m by end of 2020 London Stock Exchange Group Page 31#32T MEUM DICTUM PACTUM Appendices#33Notes excludes Adjusted operating profit, Adjusted EBITDA and Adjusted basic earnings per share amortisation of purchased intangible assets and non-underlying items, to enable comparison of the underlying earnings of the business with prior periods. Adjusted earnings per share Based on number of shares 349m (2018: 347m), excludes ESOP Exchange rates GBP EUR GBP USD Average rate 12 months ended Closing rate at 31 December 2019 31 December 2019 1.14 1.28 1.17 1.31 London Stock Exchange Group Average rate 12 months ended London Stock Exchange Group Closing rate at 31 December 2018 31 December 2018 1.13 1.34 1.11 1.27 A €10c movement in the average £/€ rate for the twelve months would have changed the Group's continuing operating profit for the period before amortisation of purchased intangibles and non-underlying items by approximately £29 million. A $10c movement in the average £/$ rate for the twelve months would have changed the Group's continuing operating profit for the period before amortisation of purchased intangibles and non-underlying items by approximately £34 million. Full year dividend 70.0p per share, final dividend 49.9p ex-dividend date 30 April 2020, record date 1 May 2020 and payment date 27 May 2020 2019 versus 2018 Income and Cost of sales changes Capital Markets: Primary Markets revenue increased by c.£32 million in H1 2019 due to a change in estimate relating to IFRS 15. This is due to a reduction in the length of time initial admissions and further issue revenues are required to be recognised. Under this new treatment, it is estimated the impact on Primary Markets will be an increase in revenue of £1 million on an annual basis LCH cost of sales reduced by more than £30 million due to an updated SwapClear agreement with partner banks, announced at Q1 2019 Page 33#34EU Transition - LSEG well positioned LSEG is committed to orderly function of markets, continuity of service to customers and supporting financial stability. Global business, balanced portfolio Global clearing operations Diversified mix of revenues No discernible change in customer behaviour London Stock Exchange Group Global business, balanced portfolio of assets across listing, trading, index and clearing services in the UK, EU, United States and Asia Clearing houses operate globally across 59 jurisdictions with equivalence and enhanced cooperative regulation arrangements Revenues earned in a variety of currencies over 50% income non-GBP Committed to supporting customers as they prepare contingency plans, but no discernible change in customers' current behaviour across listing, trading, index and clearing businesses Additional licence and The withdrawal agreement provides for a transition period until 31 December 2020 during which the UK regulatory preparations will continue to apply EU law. As such, LCH Ltd remains an EMIR 'Authorised' UK CCP and continues to offer clearing for all products and services to all members and clients. in hand LCH Ltd also continues to engage in the application process under the revised supervisory framework for EU and third country CCPs ('EMIR 2.2') to ensure a smooth transition to being a recognised, non- EU, CCP. UnaVista, TRADEcho and Turquoise received regulatory authorisation in The Netherlands; Businesses prepared should a EU27 location be needed to serve EU customers in Hard Brexit scenario MTS has established two MTF markets in Italy to replace markets operated by EuroMTS from the UK London Stock Exchange Group Page 34#35Overview of results London Stock Exchange Group Total income Cost of sales Gross profit Operating expenses before depreciation, amortisation and impairment Underlying depreciation, amortisation and impairment Total operating expenses Income from equity investments Share of profit/ (loss) after tax of associates Adjusted operating profit¹ Add back underlying depreciation, amortisation and impairment Adjusted earnings before interest, tax, depreciation, amortisation and impairment¹ Amortisation and impairment of purchased intangibles and goodwill and non-underlying items Operating profit Net finance expense Adjusted profit before tax¹ Tax Adjusted profit after tax¹ Effective tax rate Non-controlling interest Profit for the year¹ Basic earnings per share (p) Adjusted earnings per share (p)¹ Dividend per share (p) Twelve months ended 30 December 2019 £m 2,314 (210) 2,104 (839) (200) (1,039) 7 (7) 1,065 200 1,265 (327) 738 (71) 994 (236) 758 23.7% (59) 699 119.5 200.3 70.0 2018 Variance £m 2,135 (227) 1,908 (834) (135) (969) (8) 931 135 1,066 (180) 751 (66) 865 (187) 678 21.6% (75) 603 138.3 173.8 60.4 % 8% (8%) 10% 1% 49% 7% (12%) 14% 49% 19% 81% (2%) 8% 15% 26% 12% (21%) 16% (14%) 15% 16% Organic and constant currency variance % 7% (8%) 9% (1%) 49% 6% (12%) 13% 49% 17% 78% (3%) London Stock Exchange Group All above figures are for continuing operations ¹ Excluding amortisation and impairment of intangible assets (£195m) and non-underlying items (£132m) Page 35#36Diversified by currency Diversification by both income and expenses across GBP, EUR and USD 2019 Income £2,314m 40% GBP London Stock Exchange Group 29% EUR 29% USD 2% Other 2019 Underlying Expenses £1,249m Note: figures include continuing operations only, expenses include depreciation and cost of sales, but exclude non-underlying expenses London Stock Exchange Group 48% GBP 28% EUR 18% USD 6% Other Page 36#37Summarised cash flow Cash flow (£m) Cash generated from operations Net interest & royalties paid Tax paid Investment activities* Discretionary free cash flow Dividends Free cash flow 378 639 London Stock Exchange Group 1,089 261 198 153 99 Note 1 Based on weighted average shares in issue for the period of 2019: 349m, 2018: 347m * Investment activities includes purchase of property, plant and equipment, purchase of intangible assets and investment in government bonds London Stock Exchange Group Continued strong cash generation Discretionary free cash flow remains strong at 183.1p per share¹ (2018: 161.1p) Inorganic investment activities: Euroclear 4.92% minority stake - Acquisition of Beyond Ratings Page 37#38Key performance indicators Information Services ETF assets under management benchmarked ($bn) FTSE Russell Indexes Total Terminals UK Borsa Italiana Professional Terminals CC&G Clearing Contracts (m) Initial margin held (average €bn) Monte Titoli Settlement instructions (trades m) Custody assets under management (average €tn) As at 31 December 2019 Post Trade Services - CC&G and Monte Titoli London Stock Exchange Group 468 297 765 65,000 102,000 99.5 14.4 44.4 2018 Twelve months ended 31 December 2019 3.32 374 232 606 69,000 105,000 2018 111.9 11.0 45.4 3.29 Variance % 25% 28% 26% (6%) (3%) Variance % (11%) 31% (2%) 1% Post Trade Services LCH OTC derivatives SwapClear IRS notional cleared ($tn) SwapClear members Client trades ('000) CDS Clear Notional cleared (€bn) CDSClear members Forex Clear Notional value cleared ($bn) ForexClear members Non-OTC Fixed income - Nominal value (€tn) Listed derivatives (contracts m) Cash equities trades (m) Average cash collateral (€bn) DHEIGHECHIE London Stock Exchange Group Twelve months ended 31 December 2019 1,229 123 1,681 759 26 18,050 34 106.0 144.7 698 98.4 2018 1,077 110 1,487 612 16 17,239 32 98.7 152.9 810 86.7 Variance Note: Minor rounding differences may mean quarterly and other segmental figures may differ slightly. Page 38 % 14% 12% 13% 24% 63% 5% 6% 7% (5%) (14%) 13%#39Key performance indicators Capital Markets - Primary Markets New Issues UK Main Market, PSM & SFM UK AIM Borsa Italiana Total Money Raised (£bn) UK New UK Further Borsa Italiana new and further Total (£bn) Twelve months ended 31 December 2019 50 23 36 109 London Stock Exchange Group 4.5 16.3 2.5 23.4 2018 78 65 33 176 6.6 18.3 3.8 28.7 Variance % (36%) (65%) 9% (38%) Note: Minor rounding differences may mean quarterly and other segmental figures may differ slightly (32%) (11%) (34%) (18%) ¹LSEDM has been rebranded Curve Global Markets as of 24 June 2019, following the withdrawal of IOB Equity Derivatives contracts in June 2019 and the subsequent withdrawal of Norwegian equity derivatives in November 2019. Capital Markets - Secondary Markets Equity Totals for period UK value traded (£bn) Borsa Italiana (no of trades m) Turquoise value traded (€bn) SETS Yield (basis points) Average daily UK value traded (£bn) Borsa Italiana (no of trades '000) Turquoise value traded (€bn) Derivatives (contracts m) LSE Derivatives IDEM Total 1 London Stock Exchange Group Twelve months ended 31 December 2019 1,188 64.3 531 0.69 4.7 255 2.1 2.4 30.7 33.1 Fixed Income MTS cash and Bond Vision (€bn) 3,182 MTS money markets (€bn term adjusted) 113,456 2018 1,456 71.2 828 0.64 5.8 282 3.2 6.5 36.2 42.7 3,310 87,399 Variance % (18%) (10%) (36%) 8% (19%) (10%) (34%) Page 39 (63%) (15%) (22%) (4%) 30%#40Income & gross profit £ millions Index Subscription Index Asset based FTSE Russell Real time data Other information Information Services OTC SwapClear, ForexClear & CDS Clear Non OTC - FI, Cash equities & Listed derivs Other Post Trade Services - LCH Clearing Settlement, Custody & other Post Trade Services CC&G and MT Primary Markets Secondary Markets - Equities Secondary Markets FI, derivs & other Capital Markets Technology Other Total Revenue Net treasury income through CCP: CC&G LCH Other income Total income Cost of sales Gross profit London Stock Exchange Group 2018 Q1 89 52 141 24 36 201 66 33 19 118 10 18 28 29 45 33 107 13 3 470 10 38 2 520 (56) 464 Q2 96 53 149 23 39 211 64 34 21 119 12 12 24 33 44 31 108 19 2 483 11 45 1 540 (50) 490 Q3 94 59 153 23 36 212 65 34 21 120 10 15 25 20 39 30 89 16 2 464 11 46 1 522 (57) 465 Q4 94 55 149 24 44 217 73 35 22 130 9 16 25 31 41 31 103 17 2 494 11 46 2 553 (64) 489 2018 373 219 592 94 155 841 268 136 83 487 41 61 102 113 169 125 407 65 9 1,911 43 175 6 2,136 (227) 1,908 2019 Q1 99 52 151 24 39 214 76 34 24 134 11 14 25 28 37 32 97 14 2 486 11 48 1 546 (56) 490 Q2 104 60 164 24 39 227 72 35 25 132 11 15 26 62 37 30 129 16 2 532 13 48 1 594 (53) 541 Q3 108 61 169 24 37 230 80 36 28 144 11 16 27 30 39 33 102 16 2 521 12 53 1 587 (58) 529 Q4 107 58 165 25 41 231 79 35 26 140 10 15 25 31 38 29 98 20 See Notes page for 2019 vs 2018 Income and Cost of sales changes Note: Minor rounding differences may mean quarterly and other segmental figures may differ slightly 3 517 13 57 0 587 (43) 544 London Stock Exchange Group 2019 418 231 649 97 156 902 307 140 103 550 43 60 103 151 151 124 426 66 9 2,056 49 206 3 2,314 (210) 2,104 Page 40#41Contacts and further information Paul Froud Group Head of Investor Relations Tel: +44 (0)20 7797 1186 email: [email protected] Gaurav Patel Investor Relations Senior Manager Tel: +44 (0)20 7797 1154 email: [email protected] lan Hughes Investor Relations Senior Analyst Tel: +44 (0)20 7797 3334 email: [email protected] Natanya Grant Investor Relations Analyst Tel: +44 (0)20 7797 1215 email: [email protected] London Stock Exchange Group London Stock Exchange Group plc 10 Paternoster Square London EC4M 7LS London Stock Exchange Group INVESTOR RELATIONS 201 tech che Annual Report 31 December 2018 The year at LSEC 7,322.0 26 November 2019: LSEG Results of General Meeting C 28 February 2020: Preliminary results for the year ended December 2019 London Stock Exchange Group For investor relations information: www.lseg.com/investor-relations For Corporate Sustainability information: www.lseg.com/about-london-stock- exchange-group/corporate-sustainability Page 41