Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Morgan Stanley Asia Pacific Summit 2003
21 slides from Singapore Exchange's conference presentation, Nov 4, 2003
Slide 1: Singapore Exchange Limited – Morgan Stanley Asia Pacific Summit 2003
Singapore Exchange Limited Morgan Stanley Asia Pacific Summit 2003 4 November 2003 Singapore Exchange 1
Slide 2: Agenda
Agenda • CEO’s Message • Financial Results for 3 months ended 30 Sep 2003 (1Q FY2004) • Market Outlook • Defend & Grow Strategy 2
Slide 3: CEO's Message
CEO’s Message • Run the business as a business • The basics: team, customers & market integrity • Emphasis on efficiency, cost and capital management 3
Slide 4: Financial Results for 3 months ended 30 Sep 2003
Financial Results for 3 months ended 30 Sep 2003 4
Slide 5: Results Overview – 1Q FY2004
Results Overview – 1Q FY2004 • Net profit after tax & MI up 76.4% to $32.8mil • Operating revenues $85.3mil (up 46.7%) • Operating costs $39.6mil (down 2.5%) 5
Slide 6: Income Statement 1Q 2004
Income Statement 1Q 2004 1Q FY2004 1Q FY2003 yoy $Mil $Mil % change Operating Revenue 85.3 58.1 46.7 Operating Expenses 39.6 40.5 (2.5) Operating Profit 45.7 17.6 160.1 Non-Operating Revenue / (loss) (2.5) 6.2 NM Net Profit Before Tax 43.2 23.8 81.3 Tax (10.6) (5.6) 88.9 Net Profit After Tax 32.6 18
Slide 7: Breakdown of Operating Revenue
Breakdown of Operating Revenue Growth trend in total revenue… 90 80 70 60 52 (in S$mil) 50 32 28 40 22 19 30 12 12 13 9 10 20 10 19 18 18 20 21 0 1Q FY03 2Q FY02 3Q FY03 4Q FY03 1Q FY04 Stable Derivatives Clearing Rev Securities Mkt Rev Securities market revenue includes clearing fees and account ma
Slide 8: Operating Expenses
Operating Expenses Moderating cost base over the year 45 40 7 35 7 8 9 7 30 6 6 5 5 5 5 (in S$MM) 25 5 6 4 5 5 20 4 4 4 4 15 10 19 16 18 15 15 5 0 1Q FY03 2Q FY03 3Q FY03 4Q FY03 1Q FY04 Staff costs Premises System maintenance & rental Depreciation Other operating expenses 4Q FY03 excludes non-recur
Slide 9: Financial ratios
Financial ratios 1Q FY04 1Q FY03 Return on Equity* (p.a) 15.6% 9.2% Total Operating Costs 39.6 m 40.6 m Operating Profit Margin 53.6% 30.2% Cost-to-Income 46.4% 69.8% * Annualised based on quarterly results. 9
Slide 10: Market Outlook
Market Outlook SGX. Tomorrow's Market, Today EXCHANGE 10
Slide 11: Securities trading has recovered
Securities trading has recovered Q1FY04 : Trading volume of 84.5 bn is 74% of full FY03 Trading value of $55 bn is 54% of full FY03 120 160 140 100 4% 120 80 Value (S$bn) Volume (bn) 17% 100 60 84.5 84.5 80 109.6 113.8 93.8 60 40 40 20 20 0 0 FY2001 FY2002 FY2003 1QFY04 Securities Trading Volume Sec
Slide 12: Derivatives trading volume is growing
Derivatives trading volume is growing 45 38.8 40 34.9 35 +11% 31.5 30 28.0 +11% 25 12% (in MM) 20 15 10 5 0 FY 2001 FY 2002 FY 2003 FY 2004* * Figures annualised for FY2004 12
Slide 13: Recent IPO Market – Has picked up significantly
Recent IPO Market…. Has picked up significantly 1800 1700 25 1600 1400 20 20 No. of new listings 1200 1018 15 (S$Mil) 1000 14 12 800 568 10 10 600 8 471 356 412 400 333 207 5 200 108 142 0 0 1Q FY03 2Q FY03* 3Q FY03 4Q FY03 1Q FY04 Amount of IPO funds raised Total amount of funds raised Number of IP
Slide 14: Long Term IPO Trend
Long Term IPO Trend 400 60 360 365 349 356 350 Avg. Total Market Cap (S$bn) 317 50 Avg no. of new listings 300 283 51 46 45 253 43 40 250 201 200 30 30 160 26 26 150 22 20 20 100 10 50 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003* Total Market Capitalisation (5-year moving average) No. of new li
Slide 15: Defend & Grow Strategy
Defend & Grow Strategy SGX. Tomorrow's Market, Today EXCHANGE Alls)
Slide 16: Our strategic direction
Our strategic direction Solid Regulatory Framework Grow from the Defend the business Going forward core Time Horizon Align economics Product Innovation Strategic alliances • Cost focus • Market data services • CME • Capital management - ROE • New Product Development • ASX Infrastructural Development
Slide 17: Building the SGX team
Building the SGX team CEO Hsieh Fu Hua Internal Audit President Ang Swee Tian Markets SBU Operations SBU Support Oversight Customer & revenue driven Cost management and efficiency driven Markets Products & Strategy & Operations Technology Corporate Risk Mgmt Services Business Services & Dev. Regulat
Slide 18: Creating a Customer-focused organisation
Creating a Customer-focused organisation Customers Institutions/Traders Intermediaries Issuers Retail Markets Products and Services Strategy and Business Development SGX Operations Technology Corporate Services Risk Management and Regulation 18
Slide 19: Our market integrity role
Our market integrity role • Disclosure-based regime • Close collaboration with MAS • Continue to preserve market integrity 19
Slide 20: Our Investment Story
Our Investment Story • Emerging business with potential • Defend and grow from the core • Boost efficiency and manage cost • Capital management with ROE as key measure • Maintain attractive dividend policy 20
Slide 21: SGX share price performance
SGX share price performance 250 Ex-dividend on 28 Oct 2003 200 Relative prices / Index 150 100 50 0 11/22/00 2/22/01 5/22/01 8/22/01 11/22/012/22/02 5/22/02 8/22/02 11/22/02 2/22/03 5/22/03 8/22/03 SGX Share Price STI Index 21
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