Compagnie Financiere Tradition Sa · SIX:CFT
Compagnie Financiere Tradition Sa — H1 2013 Earnings Presentation
22 slides from Compagnie Financiere Tradition Sa's earnings presentation, Sep 2, 2013
Slide 1: Compagnie Financière Tradition H1 2013 results presentation
Compagnie Financière Tradition H1 2013 results presentation Zurich 2 September 2013
Slide 2: Delivering Group strategy
Delivering Group strategy Net profit – Group share up 66.6% despite reduction in revenue Results at a glance H1 2013 Performance (Variation at constant rates) • Performance presentation changed following the M CHF adoption of new accounting standards (IFRS) as of 1st 475.9 -5.7% Revenue 512.4 Januar
Slide 3: Regulatory reform overview
Regulatory reform overview Key milestone in the United States with the publication of the SEFs’ Final Rules Q113 Q213 Q313 Q413 2014 2015 US Trade Trade Focus on systemic risk reporting Central reporting Central EU clearing clearing and transparency BCBS/IO SCO Regulatory Technical Standards came in
Slide 4: Ongoing investments in distinctive technology
Ongoing investments in distinctive technology Partnership with key liquidity providers • Ensure that its services are provided as cost effectively as possible • Deliver electronic or hybrid capablity • Modes of intermediation: Voice / Electronic/ Hybrid across all relevant products • Focus on delive
Slide 5: Successfully launched new electronic initiatives
Successfully launched new electronic initiatives New currencies and products • Pioneer and long time global market leader in FX options in partnership with Volbroker • CLOB, RFQ, Auction, Hybrid • Further deployment in light of MIFIR, EMIR, DFA • IRS Euro: Live since May 2011 • Launch of IRS USD in
Slide 6: Revenue overview
Revenue overview Stabilised in Q2 up 1.4% after a transition period in the first quarter Group half-year revenue Group quarterly revenue Joint ventures (Figures and variation at constant rates) M CHF Subsidiaries +1.4% 32.6 34.9 26.5 512.4 446.0 475.9 H1 2012 H2 2012 H1 2013 Q1 2012 Q2 2012 Q3 2012
Slide 7: Revenue by region
Revenue by region Strategic positioning through diversified geographical presence Europe: Americas: UK, France, Belgium, Germany, Italy, USA, Argentina, Chile, Colombia, Mexico, Luxembourg, Russia, Spain (Minority), Brazil (Minority) Switzerland Revenue in mCHF Middle East / Africa: (H1/H1 variation
Slide 8: Revenue by product
Revenue by product Mixed impact of regulation uncertainties IDB revenue by product IDB Revenue trend (variation at constant rates) mCHF 300 (H2/H1 variation at constant rates) H1 2012 -3.3% mCHF -10.5% H2 2012 +1.3% 250 +12.8% H1 2013 531.7 496.6 200 +8.3% H1 2012 Rates Securities Commodities FX H1
Slide 9: Underlying operating margin up from 7.4% to 9.1%
Underlying operating margin up from 7.4% to 9.1% Results fully benefited from the costs reduction measures Underlying operating profit IDB operating profit before D&A (including exceptional items) margin Exceptional items Non IDB IDB At current rates At constant 2013 rates M CHF 12.7% 9.1% At curren
Slide 10: Net profit – Group share up 66.6% to CHF 21.5m
Net profit – Group share up 66.6% to CHF 21.5m Decrease of effective tax rate • Results still impacted by exceptional items Reported operating profit • Mostly legal fees and restructuring costs • Amortisation of related intangibles ending March 2014 M CHF H1 2013 H1 2012 Var cst. Var cur. • Share of
Slide 11: Consistent focus on sound balance sheet and capital position
Consistent focus on sound balance sheet and capital position Organic growth strategy reflected with net cash position and low intangible assets Assets Liabilities 31.12.12 31.12.12 M CHF 30.06.13 M CHF 30.06.13 restated restated Property, Plant & Equipment 23.6 25.6 Capital 16.8 16.2 Intangible asse
Slide 12: Net cash position
Net cash position Improved operating cash flows Net cash position trend Net adjusted cash flows trend* 400 M CHF 40 Financial debts* Unavailable cash, non-current Movements in exchange rates Other liquid assets Cash and cash equivalents 30 300 Net cash flows - financing activities 21 20 21 23 29 19
Slide 13: Shareholders’ equity and capital structure
Shareholders’ equity and capital structure Significantly differentiates the Group from its competitors Shareholders’ equity trend 400 Total Group share 300 200 100 0 *Restated for IFRS 11 and 19R Shareholders’ equity – Group share bridge Capital structure comparison1 CFT Total intangibles +21.5 +10.
Slide 14: Outlook
Outlook • Leverage on key electronic initiatives to deploy the Group’s electronic strategy • Continue to reduce costs while maintaining investments in technology • Consider growth opportunities arising from regulatory evolution • Maintain consistent focus on sound balance sheet and capital position
Slide 15: Appendix
GLOBAL Appendix Global Leaders In Interdealer Broking 4Tradition
Slide 16: Founder streaming participants include:
Founder streaming participants include: 16
Slide 17: Orders matched since launch of electronic platforms
•Since launch in May 2011, matched around 18,000 orders amounting to a notional traded of almost €1 trillion •EUR IRO auction launched in June 2013 •Since launch in February 2013, matched 4,000 orders amounting to a notional traded of $155 billion •Ready and fully compliant with the now enacted ‘Swa
Slide 18: Founder streaming participants include:
Founder streaming participants include: 18
Slide 19: Electronic FX platform features
• 16 currencies accounting for 20 major currency pairs • 11 Market Makers commited to provide a two side liquidity • Enhanced trade cycle transparency – lit pre-trade, full disclosure post-trade • Democratic incorporation of trading costs into actual transaction • Transparent trading pricing set equ
Slide 20: Implementation of new accounting standard
Implementation of new accounting standard Reduce total assets but no impact on net profit Group share Total assets bridge mCHF • Total assets at 31 December 2012 reduced by a net -37.3% IFRS impact amount of CHF 614.8m or 37.3% • Net assets now presented as equity investments which increased by CHF
Slide 21: Implementation of new accounting standard
Implementation of new accounting standard Reconciliation of revenue and operating profit Revenue reconciliation • Change in consolidation method from proportionate to equity led to M CHF an overall decrease in revenue of 6.8% or CHF 34.9m for the period -6.0% New IFRS 545.0 -6.8% ended June 2013 (6.
Slide 22: Shareholding structure
Shareholding structure Founder background Simplified legal structure At 30 June 2013 Patrick Combes currently serves as the Chairman of the Board and CEO of Patrick Combes VIEL et Compagnie Finance, VIEL & Cie and Compagnie Financière Tradition 1978 - MBA from Columbia University Majority owner 1979
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