Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Non-Deal Roadshow (February 2005)
18 slides from Singapore Exchange's roadshow presentation, Feb 2, 2005
Slide 1: Singapore Exchange Limited Lehman Brothers Investor Roadshow
Singapore Exchange Limited Lehman Brothers Investor Roadshow Hsieh Fu Hua, CEO Singapore Exchange 31 January – 2 February 2005
Slide 2: Agenda
Agenda 1. CEO’s Message & Highlights 2. Our Strategic Direction 3. Financial Performance 4. Our Investment Story 5. Q & A 2
Slide 3: CEO's Message
CEO’s Message • Building an enduring marketplace A hub for regional listings and Asian derivatives • Open connectivity Revamping trading infrastructure to enhance market access and product development New, electronic trading corporate membership boosts market making and E-Nikkei • Discipline i
Slide 4: Highlights for 1H FY2005
Highlights for 1H FY2005 • Net Profit after tax of S$52.4M • Record no. of IPOs and funds raised • Cost discipline • Higher dividend payout ratio and higher interim dividend 4
Slide 5: Our Strategic Direction
Our Strategic Direction Domestic Asian Growth Gateway Exchange linkages Extend Exchange linkages Spore derivatives Asian derivatives Retail E-migration Grow Foreign listings Foreign listings Membership Membership Capital Management HR Change Management Co/Out-sourcing Open Connectivity 5 Defend
Slide 6: Growth Drivers: Foreign Listings
Growth Drivers: Foreign Listings Record No. of IPOs and Funds Raised Our IPO Market 1H FY05 Foreign New Issuers: 30 or 65% Funds Raised (in S$M) $1,381 $290 $195 $86 $1,810 $1,101 $728 $1,054 $2,464 Domestic Foreign 46 42 10 36 China 34 (21) 46% 30 Greater 15 18 Domestic Foreign China 24 (30) 65% (2
Slide 7: Growth Drivers: Foreign Listings
Growth Drivers: Foreign Listings Exponential growth in foreign listings … Total No. of Listed Distribution of Market companies Capitalisation 606* S$356B* 25 100 149 352* S$191B* 82 19 33 74 2 3 457 274 319 168 End 1998 End 2004 End 1998 End 2004 CAGR CAGR Foreign Primary Trading 29% Foreign Primary
Slide 8: Corporate Governance Standards
Corporate Governance Standards Upholding high standards • Continue to work with listed companies, issue managers and other intermediaries – Quality of issue managers – Due diligence guidelines – Corporate investigation • Importance of continuing obligations of issuer and issue managers – Quarterly r
Slide 9: New markets: Warrants & REITS
New markets: Warrants & REITS Targeting the retail investor … • Structured warrants market 2003 2004 No. of issues 3 147 No. of units traded 45.3K 5,078 M Value traded S$4.8 M S$1,529 M – Ongoing education programme • REITs market 2002 2003 2004 No. of issues 2 3 5 (cumulative) No. of units traded 1
Slide 10: Growth Drivers: Asian Derivatives
Growth Drivers: Asian Derivatives 40,000 35,000 Contracts Traded (in '000) 30,000 25,000 18,802 8,241 19,504 (53%) (29%) 20,000 (60%) 15,000 19.8% 25.9% 38.5% 10,000 13,383 8.4% 16,846 20,177 (71%) (40%) (47%) 5,000 - 2002 2003 2004 Asian Derivatives Eurodollar 10
Slide 11: Growth Drivers: Asian Derivatives
Growth Drivers: Asian Derivatives Diversification towards higher margin products Top 5 Contracts: 1H FY04 • SGXQuest trading engine was Euroyen 17% launched in Aug 04 Nikkei Eurodollar 44% 50% • Decline in Eurodollar MSCI Taiwan contracts 33% MSCI Singapore • Launch of e-Nikkei futures 6% contract i
Slide 12: Performance at a Glance
Performance at a Glance Enhancing shareholder value 1H FY2005 FY 2003(1) (Annualised) FY 2004(1) Return on Equity (2) 17.2% 20.8% 2.0% Cost–to–Income 51.3% 47.4% 76.2% Net Profit Margin 38.9% 42.0% 5.3% Dividend per Share (gross) 3.5 cents 13.5 cents 40.5 cents - Base 3.5 cents 7.0 cents 6.5 cents -
Slide 13: Financial Performance
Financial Performance High operating leverage from strong showing in stable and net derivatives clearing revenues (In S$M) 98 85 Coverage of 69 87 operating expenses 51 81 49 68 68 79 94% - 1H FY05 26 22 24 22 21 69% 80% 99% 94% 99% - 2H FY04 73% 38 41 42 42 37 80% - 1H FY04 1H FY03 2H FY03 1H FY04
Slide 14: Our Dividend Policy
Our Dividend Policy Re-stating our commitment to shareholders Gross Dividend per Share (in cents) Payout ratio • 80% from 50% 34.0 Base dividend 6.5 • Maintain at 7 cents (gross) or 3.5 5.6 cents (net) per (Final) share 6.5 7.0 3.5 FY 03 FY 04 FY 05 Interim Base dividend Variable dividend Special di
Slide 15: Comparison of Dividend Yield
Comparison of Dividend Yield (Based on closing share price as at 31 Dec 04) SGX – Remains a good dividend play Singapore Listed Companies 7.7 Various Exchanges 8 7 Dividend Yield (%) 6 5 4 3 2 1 0 F&N SPH UOB DBS OCBC SGX HKEx ASX Euronext LSE Deutsche Borse SGX Mainboard Exchange Average Source: Bl
Slide 16: Our Investment Story
Our Investment Story • Strong revenue base leveraged to market growth • Continued discipline in cost & capital management • Attractive dividend policy • A superior ROE 16
Slide 17: Building an Enduring Market Place
Building an Enduring Market Place Asian Gateway Product Destination Utility • Exchange linkages for trading and clearing • Open Connectivity • Foreign listings • Asian derivatives suite • Market operator 17
Slide 18: Singapore Exchange Limited Lehman Brothers Investor Roadshow
Singapore Exchange Limited Lehman Brothers Investor Roadshow Hsieh Fu Hua, CEO Singapore Exchange 31 January – 2 February 2005
Singapore Exchange — Non-Deal Roadshow (February 2005) on 6ix