Compagnie Financiere Tradition Sa · SIX:CFT
Compagnie Financiere Tradition Sa — H1 2012 Earnings Presentation
18 slides from Compagnie Financiere Tradition Sa's earnings presentation, Sep 3, 2012
Slide 1: H1 results - 3 September, 2012 - Zurich
H1 results - 3 September, 2012 - Zurich
Slide 2: Executive summary
Executive summary Market CFT • Soft trading activity backdrop especially in • Stable net income while revenues were Q2. Unhinged financial markets and surge down on challenging market conditions in risk aversion prompted by elevated macro and political uncertainties • Resilience of CFT compared to r
Slide 3: Executive summary: Results at a glance
Executive summary Performance Results at a glance M CHF • Revenues down 3.7% in constant currencies 545,0 Revenue 559,6 • Underlying operating profit up 10.6% in constant currencies leading to an underlying Underlying operating margin of 7.4% 40,3 Operating • Negative impact of exceptional costs for
Slide 4: Macro & regulatory environment
Macro & regulatory environment Risk aversion returned in Q2 Incremental progress toward the G20 commitments to reform OTC derivatives Market « stress » measures Tentative regulatory timeline US EUR Q412 Q113 Q213 Q313 Q413 2014 70 3,0 2,5 Trade Central Trade Central 60 VIX reporting clearing reporti
Slide 5: Strategic positioning
Strategic positioning1 H1 down1 across the IDB sector, cyclical and structural headwinds CFT IDB resisting reasonably well Half yearly revenues Peer group – Yoy var & size CFT IDB ICAP Voice Tullett Prebon BGC GFI Tullett Prebon ex acquisitions M CHF 0% 39,7 Non IDB IDB -2% -4% -6% 13,1 13,3 -8% 17,
Slide 6: IDB regional revenues
IDB regional revenues Well balanced mix - Strong franchise in Asia Pacific – Indonesia opened Trend by region Breakdown by region M CHF All percentages based on calculations in constant currency terms 580 In constant currencies 560 100% 540 Non IDB 520 +8.8% -8.2% -5.3% +0.2% -3.7% 90% 500 80% Asia-
Slide 7: IDB product mix
IDB product mix Benefit of diversification - Complementary trends across time zones Trend by asset class Breakdown by asset class M CHF All percentages based on calculations in constant currency terms 580 In constant currencies 560 Non IDB 100% 540 90% -4.6% -4.6% +1.3% -3.7% 520 80% Commodities 500
Slide 8: Electronic trading
Electronic trading Clear strategy based on anticipated electronification of markets Market opportunities Electronic global strategy • Regulatory environment increasingly • Ensure that its services are provided as dominates clients’ decision-making cost effectively as possible processes • Deliver ele
Slide 9: Electronic trading: Key initiatives
Electronic trading Key initiatives Tradition-ICAP Volbroker TraFXpure • Pioneer and long time global market • Build phase in process, senior leader in FX options management on board, numerous bank • CLOB, RFQ, Auction, Hybrid partners • Further deployment in light of MIFIR, EMIR, DFA • CLOB • New to
Slide 10: Electronic trading: Own technology and ongoing investments
Electronic trading Own technology and ongoing investments Proprietary technology Resources and investments • Market leading proprietary technology IT headcount • Fully electronic order entry and matching Development engine 6% 24% Infrastructure & • Multi asset class, rich and flexible Support Admin,
Slide 11: Operating performance
Operating performance Underlying operating profit up 10.6% in constant currencies Group operating profit Operating profit by business M CHF Exceptional items Non IDB IDB M CHF H1 2012 H1 2011 Var cst. Var cur. 80 Revenue 545.0 559.6 -3.7% -2.6% 60 Net operating 40 -517.5 -532.2 -3.8% -2.8% expenses
Slide 12: Gross savings and investments
Gross savings and investments Proactive cost and headcount management Year to date measures will continue to materialise in H2 Track record Breakdown & H1 cost base1 bridge M CHF 80 Savings Other 60 Other H2 13 Investments 40 Support & H1 13 20 mgt Business 0 Low protection H2 12 -20 producers Busin
Slide 13: Non IDB business
Non IDB business Q1 on track followed by a difficult business environment in Q2 Gaitame has scale and balance sheet Revenues & underlying op. profit1 Gaitame’s clients deposits1 M CHF M CHF H2 As at end of period 651 72 H1 630 591 605 64 45 560 554 65 60 17 505 46 43 16 14 13 2007 2008 2009 2010 201
Slide 14: Net profit
Net profit Stable results M CHF H1 2012 H1 2011 Var cst. Var cur. Reported • No significant currency impact on H1 2012 operating 27.5 27.4 -0.1% +0.4% profit P&L Net financial income 0.4 -1.7 • Satisfactory performance for Capital Markets Holding and strong synergies with Share of profit of -0.1 -0.
Slide 15: Balance sheet
Balance sheet Consistent focus on sound balance sheet and capital position Assets Liabilities M CHF 30.06.12 31.12.11 M CHF 30.06.12 31.12.11 Total equity Property, Plant & 29.1 30.4 Capital 16.2 15.4 Equipment M CHF Intangible assets 77.2 77.3 Share premium 47.9 55.6 Investments in 39.4 40.3 Treasu
Slide 16: Net cash
Net cash Typical pattern between December and June Adjusted gross cash Cash and debt M CHF 2012 2011 M CHF Cash & cash equivalents 305.1 333.0 Bank overdraft -26.8 -5.1 325.2 -2.1 -19.0 -5.0 +0.9 300.0 Adjustments from changes in AH & MP +21.7 -2.7 activities Adjusted gross cash for cash flow 300.0
Slide 17: Outlook
Outlook • Focus on technology and leverage on 2011 and 2012 key electronic initiatives to deploy group electronic strategy • Continue to reduce cost base and prepare to accelerate in case of deterioration of market conditions – Investments in development and infrastructure to be offset through furth
Slide 18: H1 results - 3 September, 2012 - Zurich
H1 results - 3 September, 2012 - Zurich
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