Compagnie Financiere Tradition Sa · SIX:CFT
Compagnie Financiere Tradition Sa — FY2008 Earnings Presentation
30 slides from Compagnie Financiere Tradition Sa's earnings presentation, Mar 19, 2009
Slide 1: 2008 Results
2008 Results Zurich - 19 March 2009
Slide 2: 2008 performance at a glance
Solid results in an unprecedented market environment 2008 performance at a glance Net profit group Turnover EBITDA Operating profit Profit before tax share +9.8% +22.3%* +11.3% -0.4% +14.3% +1.0% 1,556.1 1,417.1 2007 2008 MCHF Operating profit before amortisation and impairment of intangibles and ex
Slide 3: Strategy consistent over the years
Solid results in an unprecedented market environment Strategy consistent over the years • Critical size and global reach • Diversification across geographies and asset classes • Track record of organic growth • Defensive balance sheet • Small level of goodwill • Net cash position • A long term view
Slide 4: Agenda
Agenda 1. 2008 Financial Review 2. Industry Dynamics 3. Strategic Outlook 3
Slide 5: 1. 2008 Financial Review
1. 2008 Financial Review
Slide 6: Record revenues amidst high levels of volatility
Record revenues amidst high levels of volatility Half year and yearly turnover Growth drivers include • Volatile markets H1 H2 • Intermediary’s role crucial in markets where there 1,556.1 is little liquidity MCHF 1,417.1 • Focus on core business 1,144.4 • Competitive positioning in a large number of
Slide 7: Third largest IDB by revenue in the world
Third largest IDB by revenue in the world Global positioning – peer group One of the very few global leaders • 2008 turnover A track record of organic growth • 17% 1998-2008 CAGR in constant terms MCHF • 15% 1998-2008 CAGR in current terms 2,992 2,295 Voice only 1,892 Current exchange rates 1,556 Co
Slide 8: Active markets in equity derivatives, commodities and rates
Active markets in equity derivatives, commodities and rates Product expertise across all asset classes Turnover by product – 2008 bridge All percentages based on calculations in constant currency terms 1800 MCHF +22.0% Deposit, capital markets, forex, currency +33.5% Rates options, emerging markets
Slide 9: Engines in the three time zones
Engines in the three time zones 2008 key developments Turnover by region – 2008 bridge • License in China 1800 All percentages based on calculations in constant currency terms MCHF +17.3% • Operations started in February 2009 1700 +26.3% 1600 +31.5% 1500 1400 -7.3% 1300 1200 Americas Continental Kin
Slide 10: Complementary dynamics across regions
Complementary dynamics across regions Europe: UK, France, Belgium, Denmark, Germany, Italy, Luxembourg, Portugal, Russia, America invested for Switzerland the future on the back Middle East / Africa: of a good 2007 Dubai, South Africa performance Major achievement in the UK 4% CAGR 1 % CAGR 19 M M M
Slide 11: Reasonable progress on operating performance excluding special charges
Reasonable progress on operating performance excluding special charges Operating profit before amortisation and impairment of intangibles and exceptionals of CHF 201.8m Ebitda of CHF 189.5m, up 11.3% year on year Before amortisation and impairment of Operating profit of CHF 149.4m, down 0.4% year on
Slide 12: Efforts to operate more efficiently step by step
Efforts to operate more efficiently step by step extending across entire business Key operating ratios Operating profit and margin – 2008 bridge 240,0 MCHF +2.8 +8.3 220,0 +35.1 In % of turnover 2008 2007 200,0 180,0 +26.0 Compensation costs 66.9 67.6 160,0 150.1 -59.3 149.4 140,0 -13.6 Operational
Slide 13: Net profit group share CHF 85.5m
Net profit group share CHF 85.5m MCHF 2008 2007 200 Profit before tax Net profit group share Operating profit 149.4 150.1 180 MCHF 160 Net financial income 30.1 3.4 140 Share of profit from equity 10.7 12.9 participation 120 Profit before tax 190.2 166.4 100 80 Income tax -81.3 -72.7 60 Profit from
Slide 14: Balance sheet reflecting organic growth strategy
Balance sheet reflecting organic growth strategy Book value per share of CHF 50.7 Balance sheet structure – peer group Total intangibles Thereof goodwill Intangible assets amount to CHF 103.5m of which 44.8m is goodwill CFT Tangible shareholders’ equity at CHF 237.2m Tullett Prebon ICAP GFI In % of
Slide 15: Net cash position and limited leverage enhance CFT competitive position
Net cash position and limited leverage enhance CFT competitive position Cash and leverage – peer group Debt/Ebitda Net cash/Ebitda Net debt/Ebitda MCHF 2008 2007 ICAP Tullett Prebon Cash & cash equivalents 378.8 331.1 CFT Financial assets @ fair value 8.7 30.1 GFI -1 0 1 2 Short term financial debt
Slide 16: 2. Industry Dynamics
2. Industry Dynamics
Slide 17: 2008 marked by an exceptional series of events
2008 marked by an exceptional series of events Aug to Oct 07 Liquidity crisis Q1 08 • Central banks intervening through rates and cash injections Q1 and Q2 08 Continuing credit crunch • First evidence of bankruptcy risks in March Q2 08 • Central banks favour “ad hoc” solutions September 08 Nature of
Slide 18: Major themes through the crisis
Major themes through the crisis Structural changes in risk perception Impaired role of the largest institutions in the credit intermediation process • That will require the traditional structure of money and capital markets to evolve Loss of confidence in major banking groups Greater government owne
Slide 19: Market structure valuations significantly impacted in 2008
Market structure valuations significantly impacted in 2008 2008 and year to date stock performance A new competitive landscape from a market capitalisation stand point 2008 YTD 2009 as of 13/3/09 10 NITE 13/03/2009 31/12/2007 9 Bn USD 8 IGG 7 IBKR 6 5 NDAQ 4 3 ITG 2 1 ICE 0 ICAP Tullett Prebon CFT G
Slide 20: IDBs have attractive features in their business model
IDBs have attractive features in their business model Both intermediaries and market places, a critical role in the market • Serve as intermediaries which facilitate transactions between buyers and sellers in a wide variety of financial instruments Adding value • Primarily in the over-the-counter (O
Slide 21: IDBs comparatively well placed to take advantage of current market
IDBs comparatively well placed to take advantage of current market An industry used to quickly respond to clients’ OTC markets, including CDS markets, have proved needs to be resilient throughout the turbulences • Main customers are investment and commercial banks, • CDS management has been smooth a
Slide 22: IDBs generally endorse the development of clearing services for OTC products
IDBs generally endorse the development of clearing services for OTC products Clearing through central counterparties (CCPs) Total Nymex volumes vs. Clearport volumes already exist in energy markets, US cash bonds and • ADV, contracts in thousands repos, listed instruments, etc. • Daily volumes of cl
Slide 23: Broader competitive landscape marked by demutualisation, consolidation and coopetition
Broader competitive landscape marked by demutualisation, consolidation and “coopetition” 22
Slide 24: Products dynamics and opportunities
Products dynamics and opportunities Reduced level of activity expected in 2009 • General themes include lower level of trading on the back of de-leveraging, consolidation of customer base, pricing pressure, disruptive regulatory action in OTC markets Short and medium term positive factors • Differen
Slide 25: 3. Strategic Outlook
3. Strategic Outlook
Slide 26: 2009 outlook
2009 outlook Prepared to make the best out of a challenging year • Closely monitoring market environment • Focus on operational efficiency Global credit crisis will bring wholesale changes to the traditional inter-dealer market • This will in turn foster an evolution of the IDB business • Profession
Slide 27: 2008 Results
2008 Results Zurich - 19 March 2009
Slide 28: Appendix
Appendix
Slide 29: Balance sheet
Balance sheet Simplified consolidated balance sheet as of 31/12/08 Dec 08 Dec 07 Dec 08 Dec 07 MCHF Shareholders’ equity 340.8 327.8 Of which Minority interests 55.1 36.0 Non-current assets 243.6 141.2 Non-current liabilities 46.7 41.2 Of which Financial debts 0.6 3.3 Of which Other fin. debts * 6.6
Slide 30: Sources, definitions, FX rates and tickers
Sources, definitions, FX rates and tickers Company Comments ICAP Estimate from Reuters Knowledge as of 11 March 2009 for ICAP FY09 revenues – FY ends March 31 GFI Group Brokerage, analytics and market data revenues net of clearing fees Regional positioning: gross brokerage revenues CME Group Proform
Compagnie Financière Tradition — FY2008 Earnings Presentation on 6ix