Singapore Exchange Ltd. · SGX:S68

Singapore Exchange — CLSA Investor Presentation (September 2004)

19 slides from Singapore Exchange's conference presentation, Sep 13, 2004

  1. Slide 1: Singapore Exchange Limited CLSA Investor Presentation

    Singapore Exchange Limited CLSA Investor Presentation Hsieh Fu Hua, CEO Singapore Exchange 13 September 2004

  2. Slide 2: Agenda

    Agenda • The Year in Review • Our Strategic Direction • Growth Drivers • Financial Performance • Our Investment Story 2

  3. Slide 3: The Year in Review

    The Year in Review • Building a robust business • Restructuring for efficiency and customer focus • Discipline in cost and capital management • Open connectivity 3

  4. Slide 4: Our Strategic Direction

    Our Strategic Direction Domestic Asian Growth Gateway Extend Exchange linkages Exchange linkages Equity options Asian Derivatives Foreign listings Foreign listings Grow Data business E-migration Membership Membership Capital management HR Change management In/Out-sourcing Open connectivity Defend 4

  5. Slide 5: Growth Drivers: Our Securities Market

    (S$BN) 0 5 10 15 20 25 30 35 40 Jan-90 Jul-90 Jan-91 Jul-91 Jan-92 Jul-92 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Growth Drivers: Our Securities Market Jan-01 Jul-01 Securities Market Turnover from Jan 1990 to Aug 2004 Jan-02 CA

  6. Slide 6: Growth Drivers: Foreign Listings

    Growth Drivers: Foreign Listings Building regional growth platform for foreign issuers Total No. of Listed Companies Market Capitalisation (S$bn) 64 [15%] 131 [22%] 97 [24%] 25 [4%] 439 [74%] 250 [61%] Domestic Foreign Primary Trading Foreign Secondary Trading 6

  7. Slide 7: Growth Drivers: Foreign Listings

    Growth Drivers: Foreign Listings Higher number of foreign listings in 2004 .…. 81 No. of New Listings 15 58 47 21 37 32 66 28 13 8 37 24 24 19 2000 2001 2002 2003 2004 to date 7 Domestic Foreign Primary Trading

  8. Slide 8: Foreign Listings: Contribution to Turnover

    Foreign Listings: Contribution to Turnover Foreign listings increasingly a key contributor to our turnover value % contribution 14 20 18 28 86 82 81 72 FY01 FY02 FY03 FY04 Domestic Foreign Primary Trading 8

  9. Slide 9: Market Cap Growth of Foreign Listings

    Market Cap Growth of Foreign Listings Year of Market Cap Current Listing Number At IPO Market Cap* Growth (S$mn) (S$mn) 2001 13 1,797 2,925 63% 2002 8 460 1,299 182% 2003 21 2,782 3,738 34% 2004 25* 2,962 4,030 36% Total 67 8,001 11,992 35%** * As at 31 Jul 04 ** CAGR based on the average listing pe

  10. Slide 10: Growth Drivers: Our Derivatives Market

    Growth Drivers: Our Derivatives Market Robust Growth in Asian Derivatives …… 40,000 35,000 Contracts Traded (in '000) 30,000 15,241 25,000 20,674 18,346 20,000 15,000 38.5% 8.4% 38.5% 10,000 8.4% 19,716 13,134 14,240 5,000 - FY2002 FY2003 FY2004 Asian Derivatives Others 10

  11. Slide 11: Growth Drivers: Our Derivatives Market

    Growth Drivers: Our Derivatives Market ….with higher margins Clearing Fees 60 47.90 50 41.60 37.80 Fees (in S$MIL) 40 30 10% 15% 20 10 0 FY2002 FY2003 FY2004 Year FY2002 FY2003 FY2004 Average Clearing Fees / Contract 1.20 1.19 1.37 11

  12. Slide 12: Extend Beyond: Strategic Alliances

    Extend Beyond: Strategic Alliances NYMEX TSE CME NSE Bursa M’sia SGX ASX 12

  13. Slide 13: Performance at a Glance

    Performance at a Glance Enhancing shareholder value FY 2004 FY 2003(1) Change Return on Equity(2) 20.8% 9.2% 11.6% Cost–to–Income 48.8%(3) 68.3% 19.5% Net Profit Margin 42.0% 32.6% 9.4% Dividend per Share (gross) (cents) 13.5 6.5 7.0 (1) Excludes non-recurring & exceptional items, Annual Report 2003

  14. Slide 14: Financial Performance

    Financial Performance Profitability improved … 400 350 316.3 Revenues 44% 300 Record Securities Trading 250 228.7 Listing/Data Services 218.5 Strong Asian Derivatives 200 165 160 154 Operating Expenses 4% 150 Fall in headcount& base 100 salary 86% Sublease of surplus premises 50 74% 70% System suppo

  15. Slide 15: New Dividend Policy

    New Dividend Policy Our Commitment to shareholders Gross Dividend per Share (in cents) 13.5 Special Raise minimum 6.5 dividend per 7.0 share and maintain payout 7.3 7.0 ≥ 50% NPAT 6.5 FY02 FY03 FY04 15

  16. Slide 16: Comparison of Dividend Yield

    Comparison of Dividend Yield SGX – A good dividend play Singapore Listed Companies Various Exchanges 9.0 8.0 8.0 Dividend Yield (%) 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 F&N SPH UOB DBS OCBC SGX HKEx ASX Euronext LSE Deutsche Borse SGX Mainboard Exchange Average Source: Bloomberg, SGX Dividend yield = Gro

  17. Slide 17: Our Investment Story

    Our Investment Story • Strong stable revenue base leveraged to market growth • Attractive dividend policy • Discipline in cost & capital management • A superior ROE 17

  18. Slide 18: Evolution of our Business

    Evolution of our Business Asian Gateway Product House Utility • Exchange linkages for trading and clearing • Open Connectivity • Foreign listings • Asian derivatives • Market operator 18

  19. Slide 19: Comparison of Total Shareholder Return

    Comparison of Total Shareholder Return From 1 Jul 2002 to 3 September 2004 SGX – A rewarding stock Various Exchanges 110 Singapore Listed Companies 100 90 70 TSR (%) 50 30 10 -10 F&N SPH UOB DBS OCBC SGX HKEx ASXEuronext LSEDeutsche Borse STI Exchange Average Source: Bloomberg 19

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