LSE Mergers and Acquisitions Presentation Deck
Delivers attractive financial returns for
shareholders
High quality revenue (1)
mix with attractive growth
Significant synergies
Attractive returns
Maintains current capital
management framework
-
High quality business mix increasing recurring subscription-based revenue from 36% to
70% (1)
London
Stock Exchange Group
Rev nue (2) CAGR 7% targeted over the first three years post completion, with growth
in 2021 expected to be below the bottom end of this range
Strong geographic diversification and broader customer reach
-
Targeted annual run-rate revenue synergy benefits in excess of £225 million by the end
of year five following completion
- Targeted annual run-rate cost synergies in excess of £350m by the end of year five
following completion
Target combined adjusted EBITDA margin of around 50% in the medium term post
completion (3)
Delivers enhanced returns for shareholders, with over 30% adjusted EPS accretion in the
first full year post completion and increasing in years 2 and 3
- Expected to deliver a ROIC that exceeds LSEG's investment criteria from the third year
post completion
1.02.0x target leverage in the 24 months post completion
- Maintaining LSEG's progressive dividend policy
Note:
(1) 2019 pro forma revenue for the Combined Business would have comprised 70% recurring subscription-based revenue compared to LSEG standalone of 36%
(2) Revenue excludes recoveries and includes LSEG net treasury income and other income
(3) 2019 adjusted EBITDA margin for LSEG was 54.7% and 2019 adjusted EBITDA margin for Refinitiv was 39.8% (excluding recoveries)
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