Compagnie Financiere Tradition Sa · SIX:CFT
Compagnie Financiere Tradition Sa — FY2017 Earnings Presentation
17 slides from Compagnie Financiere Tradition Sa's earnings presentation, Mar 16, 2018
Slide 1: Compagnie Financière Tradition 2017 Results
Compagnie Financière Tradition 2017 Results Zurich, March 2018
Slide 2: Key figures performance and financial position as of 31 December 2017
Key figures performance and financial position as of 31 December 2017 CHF CHF 873m 46m Net profit – Revenue* Group share CHF CHF 80m ~708m Underlying Market operating capitalization1) profit* Compagnie Financière Tradition CHF CHF 218m 425m Net cash Shareholders’ position* equity** 2 *Adjusted basis
Slide 3: A long established Swiss group with proven track record
A long established Swiss group with proven track record Focused on critical size and quality of balance sheet Consistent strategy since acquired by Viel & mCHF 1'400 600 Cie in 1997 Phase 1 Phase 2 Phase 3 Phase 1 – • Return to profitability 1997 to • Built critical market share 1'200 2008 Focus on
Slide 4: A sector with only global players, of which Tradition is one
A sector with only 3 global players, of which Tradition Consolidation at an advanced stage 3 global players represent ~80% of sector revenues Further consolidation to be expected #3 Global majors >USD 800m Estimated market share 18% Broking 35% Revenues Large multi-specialists <USD 150m only 47% Equ
Slide 5: Growth opportunities going beyond the theme of consolidation
Growth opportunities going beyond the theme of consolidation A larger fee pool at stake with the unfolding of a new market structure • OTC markets split in two segregated • A degree of convergence between D2D and tiers: Dealer-to-Dealer (D2D) and D2C happening Dealer-to-Client (D2C), with the except
Slide 6: Reported operating profit up 4.8% in a stabilizing revenue environment
Reported operating profit up 4.8% in a stabilizing revenue environment Dividend in cash of CHF 5.00 per share FY 2017 performance summary, in mCHF • IDB Adjusted revenue up 2.9% with underlying operating +11.1% +1.2% -0.1% -5.0% 4.8% -3.7% -7.6% -7.4% profit up 1.0% in constant currencies to CHF 73.
Slide 7: Revenue overview
Revenue overview Importance of a global and diverse product offering Group adjusted revenue Adjusted revenue by business M CHF M CHF IDB 2016 2017 870.1 873.5 +1.8% +2.9% Non-IDB Joint ventures 833.1 846.0 66.7 71.0 -23.1% 37.0 Subsidiaries (reported) 27.5 803.4 802.5 2016 2017 Adjusted revenue by r
Slide 8: Diversified revenue portfolio by geographies and asset classes
Diversified revenue portfolio both in terms of geographies and asset classes Breakdown by region in 2017 United Asia Pacific; Kingdom; 28% 32% Europe, Middle East, Africa • United Kingdom, Americas • France, Asia Pacific Geographies • USA, • Belgium, • Japan, • Argentina, • Germany, • China Mainland
Slide 9: Diversified revenue portfolio by product
Diversified revenue portfolio both in terms of geographies and asset classes Breakdown by product in 2017 Non IDB 3% Currencies and Securities and Commodities IDB: 97% rates security derivatives Commodities Non-IDB 22% • Interest rate • Government • Oil • Gaitame.com – derivatives bonds • Electricit
Slide 10: IDB adjusted underlying operating profit up 1.0% to CHF 73.4m
IDB adjusted underlying operating profit up 1.0 % to CHF 73.4m Increase in front office staff Adjusted underlying operating profit IDB headcount trend margin Exceptional 2'229 2'168 -5.0% 2'125 2'114 2'084 M CHF items 9.9% 9.3% Non IDB 85.8 80.8 IDB 1'531 1'449 1'414 1'380 1'439 12.7 7.4 73.1 73.4 6
Slide 11: Gaitame.com reduced performance
Gaitame.com reduced performance Market impacted by low currency volatility, particularly in the JPY Revenue trend* EBITDA trend* M CHF M CHF At current rates At constant rates (variation at constant rates) At current rates At constant rates (variation at constant rates) -19.2% margin -35.5% 37% 39%
Slide 12: Net profit – Group share down 7.4% to CHF 46.4m
Net profit – Group share down 7.4% to CHF 46.4m Net exchange losses CHF 1.3m, a negative variation of CHF 6.3m on 2016; US tax reform impact Net profit – Group share M CHF FY 2017 FY 2016 Change Change at at Net interest expense -4.6 -6.5 current constant exchange exchange Net foreign exchange gains
Slide 13: Continued focus on strong balance sheet
Continued focus on strong balance sheet Assets Equity and Liabilities M CHF 31.12.17 31.12.16 M CHF 31.12.17 31.12.16 Property, Plant & Equipment 20.2 21.6 Capital 18.0 17.6 Intangible assets 55.0 51.0 Share premium 36.4 24.3 Investments in associates and joint ventures 135.2 126.6 Treasury shares -
Slide 14: Shareholders’ equity of CHF 425.0m and net cash position of CHF 218m
Shareholders’ equity of CHF 425.0m and net cash position of CHF 218m1) Gross adjusted cash balance of CHF 457m; unused credit facilities above CHF 100m Net cash position trend Shareholders’ equity breakdown Cash in JVs Financial debts* Unavailable cash, non-current Capital and share premium Consolid
Slide 15: Business model incorporates a strong operating upside
Business model incorporates a strong operating upside Consistent dividend payout Performance trend between 2004 to 2017* Dividend payout trend 2004 to 2017 (in CHFm) 1'800 Revenue Underlying operating profit Net profit 500 1'600 1'556 450 1'417 8.0 8.0 8.0 1'400 1'353 400 6.0 7.0 5.0 5.0 4.0 4.5 3.0
Slide 16: Outlook
Outlook CFT, a Swiss group ranked amongst the top 3 worldwide in its sector Roadmap based on growth initiatives, operational performance and quality of balance sheet $15-20 bn New boundaries of the global fee pool, Positioned to capture growth opportunities in its core business, a multiple of 3x the
Slide 17: Thank you
Thank you a a Global Leaders In Interdealer Broking / | radition
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