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7/31/2019 2012 Shareholder Meeting Presentation Gain Capital
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Annual Shareholder MeetingJune 2012
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Agenda
Call to Order; Opening of Polls Introduction of Directors Introduction of Management Introduction of Independent Registered Public Accounting Firm Designation of Inspector of Election; Materials Available for
Inspection Report of Quorum Election of Directors and Approval of Additional Matters
Proposal 1: Election of Directors Proposal 2: Ratify Appointment of Independent Registered Public
Accounting Firm
Closing of Polls and Preliminary Report of Inspector of Election Adjournment Question and Answer Period
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In addition to historical information, this presentation contains"forward-looking" statements that reflect management's expectationsfor the future. A variety of important factors could cause results todiffer materially from such statements. These factors are notedthroughout GAIN Capitals annual report on Form 10-K, as filed withthe Securities and Exchange Commission on March 15, 2012, and include,but are not limited to, the actions of both current and potential newcompetitors, fluctuations in market trading volumes, financial marketvolatility, evolving industry regulations, errors or malfunctions inour systems or technology, rapid changes in technology, effects ofinflation, customer trading patterns, the success of our products andservice offerings, our ability to continue to innovate and meet thedemands of our customers for new or enhanced products, our ability tosuccessfully integrate assets and companies we have acquired, changesin tax policy or accounting rules, fluctuations in foreign exchangerates, adverse changes or volatility in interest rates, as well asgeneral economic, business, credit and financial market conditions,internationally or nationally. The forward-looking statements includedherein represent GAIN Capitals views as of the date of this release.GAIN Capital undertakes no obligation to revise or update publicly anyforward-looking statement for any reason unless required by law.
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Retail business FOREX.com
Growing institutional business GAIN
GTX
OTC forex and precious metals
Oil, commodity and equity-index CFDs(1)
Listed securities
Strategically located in key forex markets
including Europe, USA and Asia
Direct operations and partnerships in key
emerging markets: China, Mexico and Turkey
4
(1) CFDs = Contracts-for-Difference; OTC = Over-the-Counter
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GAIN Capital: Core Strengths
Innovative technology and strong brand recognition toattract retail investors
State-of-the-art institutional platform enabling peer-to-peertrading
Solid track record of acquisitions
5
Return of capital through dividends,buybacks
Growth strategy aimed atdiversifying product offerings andpursuing targeted acquisitions
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Navigating Adverse Market Conditions
Market conditions adversely affecting revenue capture
FX average true range (ATR) indicators hit four-year low in 1Q12
FX intraday volatility hit five year low in 1Q12
GAINs strong brand helped maintain and improve key metrics
Client assets rose 15% year-on-year
Average account size grew 34%
Average trade size stable at $43,046
Successfully managed expenses to deliver positive EBITDA despiterevenue decline
Continue to invest in growth areas organically & through acquisitions
6
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571.11,326.2 1,246.3 1,564.1
2,427.8
512.5 853.10
1,000
2,000
3,000
2007 2008 2009 2010 2011 Mar-11 Mar-12
31.6 40.952.7 64.3 63.4 62.7
0
20
40
60
80
2007 2008 2009 2010 2011 Mar-12
109.0 123.9199.8
256.7 310.4325.9
0
100
200
300
2007 2008 2009 2010 2011 Mar-12
(1)
7
Traded Retail Accounts (Last 12 Months)(3) (000s)
Total Trading Volume(3) ($Bn)
Client Assets(2) ($MM)
(1) CAGRs and chart data do not include China-related business.
(2) As of December 31 for each year except where indicated.(3) For year ended December 31 except where indicated.
3 Months Ended
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Estimated Average Daily Trading Volume
8
0
50
100
150
200
250
300
350
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2001 2004 2007 2010
(1) Source: Aite Group, Bank for International Settlements
Total Volume Retail Volume
According to Aite Group, there were
8.3 million retail forex traders in
2010
Up from 1.3 million in 2005
Half retail FX market located in
Asia
Continued growth expected from China,
India and Middle East
US market to reach 4.8mm by 2020
Up from 450k in 2010
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FOREX.com
Customer
Active
Trader
Online
Trader
AverageAge
39 53 51
Trades/Year 550 181 17
Age Over half are under the age of 34 (52%)
Education72% have at least a 4-year college degree; 35% havea post-graduate degree
Personal Income /Total Assets
33% of Ambitious Techies make $90k or more per yearand 54% have at least $100k in financial assets
Current tradingExperience
35% trade forex only. 56% also trade stocks
TradingConsistency
33% trade the forex market continuously.38% go in and out of the market as opportunities arise
Attitudinalhighlights
61% feel comfortable with some high risk/high rewardchoices
FOREX.coms Affluent TechiesOverall: Young and very active
Forex traders are young, self-motivated
and fit an early adopter / influencer profile
9
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Our most powerful trading platform foractive traders delivers advanced toolsand research, automated trading, etc.
Easy-to-use trading tools, integratedresearch and account management in a
secure, web-based environment
Mobile version of FOREX.com website,iPhone, Android apps, iPad
Third-party application features robusttechnical analysis tools & tradeautomation capabilities
Proprietary & third-party research,interactive web-based seminars, trainingprograms, etc.
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Mobile volume growth~70% of mobile volume via iPhone App
11(1) Dollars in billions.(2) Compared to customers who only trade using the desktop platform.
Proprietary technology; not
outsourced
330% increase in mobile volume
over last 12 months
Mobile Offerings: iPhone & Android Apps
iPad App
Mobile web
51% of our active customerstrade on a mobile device
60% more trades
56% higher volume
30% higher deposits
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Mobile Volume(1)
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(1) FOREX.com's execution statistics represent orders executed on FOREX.com's FOREXTrader platform during market hoursbetween March 31, 2012 17:00 ET and April 30, 2012 17:00 ET.
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Monthly Scorecard measures:
Execution speed
Opportunity for improvement
Percentage of trades accepted
Pricing transparency
Published minimum, typical and live
spreads
Pricing comparison against third party FX
rate feed (GTIS)
We are the only retail FX firm providing
this level of detail about pricing andexecution quality
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GAIN GTX is an ECN for buy-side
institutions, including hedge funds, asset
managers and proprietary traders.
Exclusive trading technology
Peer-to-peer trading capabilities
Advanced algorithmic trading features
Prime brokerage credit, central clearing
model
GTX Direct Specialty execution desk
LTM March 31 volume: $1.2 trillion
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Institutional Platform Growing GTX Volume
GTX product gaining tractionamong institutions: ECN volume rose 325% Y-o-Y to
$468 billion in Q1
Innovative technology with multi-lateral credit model gaining traction
with hedge funds, high frequencytraders, etc.
Product expansion intohydrocarbons Differentiated offering including
non-USD denominated contracts &basket trading capabilities
Fee-based revenue stream
$110.1 $97.4
$260.0
$386.4
$468.0
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
$450.0
$500.0
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
GTX Volume (in billions)
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Dividends and Share Buybacks
Dividend program initiated in October 2011 Dividend of $0.05 per share authorized
Three quarterly dividends declared to date
Plans to continue with dividend program of $0.05 per share
Ongoing share buyback program supports stock price More than one million shares repurchased since May 2011
Total value of shares purchased $5.9 million
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Figures as of May 24, 2012
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Growth: Acquisitions
Capital requirements and regulatorycompliance costs continue to driveindustry consolidation
Ongoing evaluation of potentialopportunities to generate shareholdervalue, specifically fee-based revenues
Strong operating cash(1) position of$129 million at end of 1Q12 to supportacquisitions
16(1) Operating Cash calculated as sum of Cash & Equivalents, Short Term Investments and Receivablefrom Broker less Payable to Customers.
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Growth: Product Diversification
New Contract-for-Difference offering to launch Summer2012 Focused on delivering a differentiated trading experience, e.g.
integrated community/social trading features, automated trading
capabilities & innovative analytical tools Launching with 200+ CFDs (indices, commodities, sectors & FX)
Aggressive global rollout schedule for second half of 2012
Expanding institutional products to include hydrocarbons Differentiated offering including non-USD denominated contracts
and basket trading capabilities
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GAIN Capital: Core Strengths
Innovative technology and strong brand recognition toattract retail investors
State-of-the-art institutional platform enabling peer-to-peertrading
Solid track record of acquisitions
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Return of capital through dividends,buybacks
Growth strategy aimed atdiversifying product offerings andpursuing targeted acquisitions
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