Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — FY2023 Earnings Presentation
21 slides from Singapore Exchange's earnings presentation, Aug 17, 2023
Slide 1: FY2023 Results Analyst and Media Briefing
FY2023 Results Analyst and Media Briefing Loh Boon Chye, Chief Executive Officer Ng Yao Loong, Chief Financial Officer 17 August 2023 Singapore Exchange Commodities | Equity Derivatives | Fixed Income | FX | Indices | Securities
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Statements in this presentation that are not historical facts are statements of future expectations with respect to the financial conditions, results of operations a
Slide 3: Agenda
Agenda 1 FY2023 – Financial Highlights and Performance 2 Business Update 3 Questions and Answers 3
Slide 4: Financial Highlights and Performance
FY2023 Financial Highlights and Performance Ng Yao Loong, Chief Financial Officer 4
Slide 5: FY2023 Highlights
FY2023 Highlights Resilient growth in a challenging macroeconomic environment Group Revenue & Expenses Group NPAT1 Group Margins (%) 8.7% 7.7% 26.5% 10.3% 0.5% pts 0.6% pts 1,099 1,194 571 48.9 49.4 451 456 503 41.5 42.1 562 605 2 Revenue Expenses Reported Adjusted Op. Profit Margin Adj. NPAT Margin
Slide 6: Revenue growth driven by our Derivatives business
Revenue growth driven by our Derivatives business ▪ Higher Derivatives revenue and associated Treasury Income ▪ Decline in revenue from Capital Raising and Cash Equity Derivatives1 (+$116M) Capital Raising / Cash Equity (-$46M)2 FY2022 FY2023 FY2022 FY2023 1.51 1.61 1,179 Avg. clearing Fixed Income
Slide 7: NPAT includes non-cash adjustments from investments
NPAT includes non-cash adjustments from investments Non-cash adjustments +9 +11 -40 -23 -15 -10 ▪ Intangible assets ▪ Investment property 571 503 Reported NPAT FV gain from Writeback of Writeback of Recognition of Impairment Others2 Adjusted NPAT investment in forward liability earn-out (MT) investm
Slide 8: FY2023 Revenue up 8.7% to $1,194M
FY2023 Revenue up 8.7% to $1,194M ▪ FICC revenue, accounting for 28.3% of total revenue, up 33.8% from growth in Currencies & Commodities − Excluding MaxxTrader, FICC revenue up 30.6% ▪ Average fee per contract for Equity, Currency and Commodity derivatives increased 6.4% from $1.51 to $1.61 +53 -42
Slide 9: Impact to SGX derivatives average clearing fees from GIFT Connect
Impact to SGX derivatives average clearing fees from GIFT Connect ▪ Beginning FY2024, royalties expense for GIFT Nifty will no longer be applicable ▪ Revenue share with NSE will be netted-off against Trading & Clearing revenue − FY2023 Pro-forma Derivatives average clearing fee will be ~3% lower if
Slide 10: FY2023 Total Expenses up 7.7% to $605M
FY2023 Total Expenses up 7.7% to $605M ▪ Additional 6 months of expenses from the full-year consolidation of MaxxTrader in FY2023 contributed 2.2% points to the expense increase +7 +4 +7 -16 +25 ▪ Higher ▪ Increased ▪ Amortisation ▪ Full-year ▪ Full-year consolidation volumes in marketing of purchas
Slide 11: FY2024 expense and capex guidance
FY2024 expense and capex guidance ▪ Invest for growth; maintain cost discipline ▪ Increase in projected capital expenditure in part due to $8M of capex deferred from FY2023 Total Expense Capital Expenditure ($’M) ($’M) Mid-single digit % growth 75 - 80 $8M deferment 59 1 605 FY2023 FY2024 Guidance F
Slide 12: Delivering shareholder returns
Delivering shareholder returns ▪ Maintain healthy leverage ratio – Gross Debt to EBITDA1 ratio at 1.1x, down from 1.2x a year ago ▪ Final quarterly dividend of 8.5 cents per share, if approved at our upcoming AGM in October, would represent an annualised increase of 6.3% EPS Growth Dividend Growth A
Slide 13: Business Update
Business Update Loh Boon Chye, Chief Executive Officer 13
Slide 14: Asia remains a bright spot in the world economy
Asia remains a bright spot in the world economy We are playing to our strengths in the current challenging macroenvironment Asia’s dynamic SGX Group economic growth as a multi-asset hub China and India are Trusted and proven forecast to generate pan-Asian access about half of global market platform
Slide 15: Powering ahead: Another milestone year for iron ore
Powering ahead: Another milestone year for iron ore 35% Growth in Commodities DAV1 Access to fast-growing Asia to 160k in FY2023 Total Iron Ore DAV (k) Screen trading (% Paper to physical of total futures) ratio (x) Achieved another record year in iron ore; strong momentum in further increasing fina
Slide 16: Record performance strengthens SGX FX franchise
Record performance strengthens SGX FX franchise 28.7% growth in Currency Futures Volume An integrated SGX FX franchise that is differentiated 7.3% growth in OTC FX1 ADV2 Gateway to the global FX ecosystem, anchored by the world’s most liquid Asian FX futures exchange, together with cutting- Our CNH
Slide 17: Cementing our position as the preferred venue for Asian equity derivatives
Cementing our position as the preferred venue for Asian equity derivatives Widening suite of products to meet evolving market needs World’s most liquid and actively- Positive momentum and growing Expanding sustainable traded contracts covering largest liquidity in other key Asian derivatives shelf t
Slide 18: Enabling multi-asset access via data and connectivity
Enabling multi-asset access via data and connectivity Strengthen business by fortifying index capabilities Continued growth momentum Fortifying Index capabilities in Data and Connectivity Growth in Connectivity business from more value-added Focus on creating growth and scale through partnerships wi
Slide 19: Multi-asset growth hub in a thriving Asia
Multi-asset growth hub in a thriving Asia Facilitating international capital flow in a AAA environment Preferred venue for Asian equity derivatives Build a fully-integrated and scalable FX platform to become Asia’s largest one-stop venue for international FX futures and OTC participants Leader in ir
Slide 20: Questions and Answers
Questions and Answers Loh Boon Chye, Chief Executive Officer Ng Yao Loong, Chief Financial Officer Michael Syn, Head of Equities Lee Beng Hong, Head of Fixed Income, Currencies & Commodities Ng Kin Yee, Head of Data, Connectivity & Indices Pol De Win, Head of Global Sales & Origination 20
Slide 21: Thank you
Thank you Singapore Exchange Commodities | Equity Derivatives | Fixed Income | FX | Indices | Securities sgx.com This material is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be cont