TP ICAP : Preliminary Results 2022

14 March 2023

TP ICAP Group plc

Financial and preliminary management report for the year ended 31 December 2022

Nicolas Breteau, CEO of the Group, said:

"We delivered a strong performance: high single-digit revenue growth and an increase in profitability. Significant monetary tightening in many economies benefited Rates, our largest business.

Our transformation is going well. We have made good progress rolling out Fusion, our electronic platform, and are working with clients to embed it across their systems. Energy & Commodities has received FCA registration on its spot crypto assets platform and is expanding its Environmentals business. Parameta Solutions is growing its client, product and distribution base. A partnership to provide independent fair valuations of OTC derivatives - a growing market segment - is being launched today with Numerix, a global OTC analytics firm. Liquidnet is building out its Primary Markets offering, and the D2C Credit proposition is live.

Capital management is an important part of our strategy. We committed to freeing up £100m of cash, and reducing debt, by the end of 2023. Progress has been good with over £30m already freed up in H2 2022. In addition, as previously announced, we continue to focus on identifying, and returning, any potential surplus capital to shareholders, subject to the ongoing assessment of our balance sheet and investment requirements. The Board is recommending a final dividend per share of 7.9 pence, which would bring the total for the year to 12.4 pence, a 31% increase.

We have a clear strategic roadmap and a strong franchise. Our market-leading positions in broking, and our deep liquidity pools, mean we are well positioned as central banks continue to withdraw liquidity and interest rates remain elevated."

Results for the Period

Statutory results:

Page 1

Adjusted results (excluding significant items):

A table reconciling Reported to Adjusted figures is included in the Financial and Operating Review on page 14.

The percentage movements referred to in the sections below are in constant currency (unless otherwise indicated), to reflect the underlying performance of the business, before the impact of foreign exchange movements year-on-year. Constant currency refers to prior year comparatives being retranslated at current year foreign exchange rates. Percentage movements in reported currency reflect the strengthening of the USD against GBP, which has been a tailwind for the Group in 2022. Approximately 60% of the Group's revenue (and approximately 40% of costs) are US Dollar denominated.

Financial highlights

Strong revenue performance

• Group revenue up 7% (+13% in reported currency);
• Global Broking (GB) revenue increased 7%. All asset classes delivered high single digit growth. Higher margin Rates business performing well;
• GB productivity up: revenue per broker increased 14%. Market share up1, underlining leadership position;
• Energy & Commodities (E&C) revenue declined 2% - in line with exchange volumes. European Gas & Power: most challenging market conditions for some time;
• Parameta Solutions2 revenue up 8%; New partnerships launched: partnership with Numerix announced today;
• Liquidnet division3 revenue up 18%, reflecting 12-month contribution in 2022 from acquired Liquidnet platform (completed in March 2021). Like-for-like revenue for Liquidnet platform declined, reflecting difficult and volatile equity market conditions for block trading, and global commission wallet lowest since early 20094.

Increased profitability

• Adjusted EBIT up 8% to £275m (2021: £255m), driven by strong Rates performance. Increased 18% in reported currency;
• Reported EBIT increased 68% (in reported currency) to £163m (2021: £97m);
• Adjusted EBIT margin, prior to Russian P&L charges of £21m, increased to 14.0% (2021: 12.9%). Including Russian impact: 13.0%.

1. Compared with the two other listed peers for H1 2022 vs FY 2021.
2. In previous reporting, Parameta Solutions included D&A and Post Trade Solutions (PTS); The Matchbook and ClearCompress brands within PTS are now reported under Global Broking, while e-Repo is now reported in the Liquidnet division.
3. As previously announced in our Q3 Trading Update on 1 November 2022, the Liquidnet division includes the Liquidnet platform (the acquired business), COEX Partners, ICAP Relative Value, and from October 2022 onwards, MidCap Partners, following the transfer into Liquidnet from Global Broking.
4. Source: McLagan

Page 2

Capital management review and cost savings highlights

• On track to free up £100m by end 2023 and reduce debt. Around £30m freed up in H2 2022.
• Ongoing assessment of balance sheet and investment requirements.
• Achieved target to deliver £25m of Group P&L cost savings by end 2022, alongside continued investment in the business. On track to deliver at least £30m in Liquidnet integration cost synergies by end 2023; previous target £25m.

Delivering 2023 Capital Markets Day targets (subject to market conditions)

• Parameta Solutions (50%), despite Covid-19 challenges, expected to exceed Contribution Margin target by end-2023. Global Broking (40%) expected to be close1 to target. E&C (35%) expected to be relatively close1 to target.
• At Adjusted EBIT Margin level, Global Broking (19%) and E&C (15%) expected to be relatively close to 2023 targets; Parameta Solutions (45%) expected to exceed target.
• Contribution Margin target set for new combined Liquidnet division and overall Group Adjusted EBIT Margin target updated:
  o Group Adjusted EBIT Margin: 14% (from 18%); Liquidnet Contribution Margin: 30%.

Strategic highlights

Transforming: Fusion on track.

• Fusion - on target - implemented on Global Broking desks covering 40% of in-scope revenue (FY21: 20%).
• On track to complete rollout across in-scope Global Broking revenue (55% of total) by end 2025. Dedicated Fusion Sales team driving client adoption.
• Fusion implemented across key desks: TP ICAP UK inflation and interest rate swaps and TP
  ICAP EUR inflation. Key 2023 launches: UK Gilts and TP ICAP Sterling IRS: volume matching.

Diversification: Environmentals, Digital Assets, Parameta Solutions, Liquidnet

• Environmentals:

• 1. Fusion client-facing screen for environmental markets rolled out: emissions and green certificates. First trades completed.
• Digital Assets:
• 1. FCA registration obtained for spot crypto assets institutional platform.

• 1. Full launch planned for 2023.
  1. Well received
• Parameta Solutions:
• 1. First inter-dealer broker authorised by FCA as benchmark administrator. Administering nine TP ICAP interest rate swaps benchmarks.

1. Launched ClearConsensus in partnership with PeerNova. Helping institutions to improve fair value assessments, ensuring more efficient capital allocation.

1. Announcing today a partnership with Numerix, leading global OTC analytics company. Delivering high quality, independent fair valuations of OTC derivatives.

1 Guidance that refers to being "close" to target is defined as within one percentage point of target;

"Relatively close" is defined as being within one to two percentage points of target. Page 3

• Liquidnet:

1. D2C Credit proposition live.

1. Diversifying core equities franchise. Successfully launched pre-market block trading

capability at full day VWAP price in Hong Kong, Japan, Australia.

1. Expanded in cross-border, algo trading and programme trading: new business wins already. Sales footprint extended to Paris, Madrid, Frankfurt, South Africa.

Dividend

The Board recommends a final dividend per share of 7.9 pence, bringing the total full year dividend to

12.4 pence per share, up 31% (2021: 9.5 pence per share), in line with our policy. The policy targets dividend cover of c.2x on adjusted post-tax earnings: a 50% pay-out ratio for the year.

Outlook

Our market-leading businesses, and our focus on transformation, diversification and dynamic capital management, mean the Group is well positioned to benefit from the continued withdrawal of central bank liquidity. We expect the impact of inflation on our business in 2023 to be broadly mitigated by our ongoing focus on cost efficiencies.

Global interest rates are expected to remain elevated in 2023; we expect that volumes will continue to be solid, but moderated from the peaks at the beginning of the war in Ukraine. The recent decline in the European gas price has supported a more liquid, and stable, market so far this year. A sustained recovery continues to depend on geopolitical developments.

Page 4

2022 results presentation

The Group will hold an in-person presentation and Q&A at 09:00 GMT today in the Peel Hunt auditorium at 100 Liverpool Street, London, EC2M 2AT. For those unable to attend in person, the presentation will also be broadcast via a live video webcast. Please use the following details to attend the presentation virtually:

Webcast link: https://streamstudio.world-television.com/854-1116-35180/en

Joining by telephone

United Kingdom (Toll Free) +44 800 640 6441

United Kingdom Toll: +44 20 3936 2999

United States (Local) 1 646 664 1960

All other locations: +44 20 3936 2999

Participant access code: 048201

Participants will be greeted by an operator who will register their details.

Attendees via the webcast will be able to ask questions on the phone or by typing them into the online platform.

A recording of the presentation will also available via playback on our website after the event.

Forward looking statements

This document contains forward looking statements with respect to the financial condition, results and business of the Company. By their nature, forward looking statements involve risk and uncertainty and there may be subsequent variations to estimates. The Company's actual future results may differ materially from the results expressed or implied in these forward-looking statements.

Enquiries:

Analysts and investors

Dominic Lagan

Direct: +44 (0) 20 3933 0447

Email: dominic.lagan@tpicap.com

Media

Richard Newman

Direct: +44 (0) 7469 039 307

Email: richard.newman@tpicap.com

About TP ICAP

• TP ICAP connects buyers and sellers in global financial, energy and commodities markets.
• It is the world's leading wholesale market intermediary, with a portfolio of businesses that provide broking services, data & analytics and market intelligence, trusted by clients around the world.
• We operate from more than 60 offices across 28 countries, supporting brokers with award- winning and market-leading technology.

Page 5