Compagnie Financiere Tradition Sa · SIX:CFT
Compagnie Financiere Tradition Sa — FY2013 Earnings Presentation
18 slides from Compagnie Financiere Tradition Sa's earnings presentation, Mar 14, 2014
Slide 1: FY 2013 results presentation
Compagnie Financière Tradition FY 2013 results presentation Zurich 14 March 2014
Slide 2: Challenging environment, market structure in transition
Challenging environment, market structure in transition Underlying operating margin up from 5.9% to 6.4% despite reduction in revenue Results at a glance FY 2013 Performance • Introduction of new accounting standards (IFRS) as of M CHF (Variation at constant rates) 1st January 2013 874.4 -5.7% Reven
Slide 3: Regulatory reform overview
Regulatory reform overview Implementation of the 3 G20 commitments in 2013 in the United States US EU BCBS/IO Q113 Q213 Q313 Q413 2014 >2015 SCO Trade Trade Focus on systemic risk reporting Central reporting Central clearing clearing and transparency Shift from bilateral OTC Regulatory Technical Sta
Slide 4: Ongoing investments in distinctive technology
Ongoing investments in distinctive technology Partnership with increasing number of 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 produ
Slide 5: Successfully launched new electronic initiatives
Successfully launched new electronic initiatives New currencies and products •Pioneer and global market leader in FX options in partnership with Volbroker consortium •CLOB, RFQ, Auction, Hybrid •New developments include •Logical trading arenas allowing ON/OFF SEF price segregation as well as forming
Slide 6: Revenue overview
Revenue overview YoY variation in line with peer group Group half-year revenue Half-year revenue by business M CHF M CHF (H2/H2 variation at constant rates) Joint ventures IDB H1 2012 Subsidiaries -5.2% H2 2012 32.6 Non-IDB H1 2013 531.7 34.9 496.6 +5.6% 26.5 461.5 H2 2013 414.5 512.4 24.8 14.2 475.
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: (H2/H2 variation
Slide 8: Revenue by product
Revenue by product Mixed impact of regulation uncertainties IDB revenue by product IDB Revenue trend M CHF (variation at constant rates) 300 (H2/H2 variation at constant rates) H1 2012 +2.5% -3.0% M CHF H2 2012 -11.6% H1 2013 250 -2.3% H2 2013 993.2 911.1 200 -13.2% FY 2012 Rates Securities Commodit
Slide 9: Underlying operating margin up from 5.9% to 6.4%
Underlying operating margin up from 5.9% to 6.4% Continued focus on costs reduction Underlying operating profit IDB Headcount margin Exceptional items Non IDB IDB Support Front office staff M CHF 9.1% 7.4% 5.7 2.6 1'765 4.1% 3.1% 1'622 1'531 1'499 37.7 1.4 41.0 17.9 13.5 -1.9 -0.2 -12.8 -8.4 -8.5 71
Slide 10: Net profit – Group share of CHF 15.5m
Net profit – Group share of CHF 15.5m Impact from net financial result Reported operating profit M CHF FY 2013 FY 2012 Var cst. Var cur. Underlying operating profit 60.0 59.6 +8.2% -0.6% Amortisation of intangibles -3.2 -3.2 Exceptional expenses -13.7 -16.2 Exceptional income - +4.7 Operating profit
Slide 11: Consistent focus on sound balance sheet and capital position
Consistent focus on sound balance sheet and capital position Organic growth strategy reflected in net cash position and low intangible assets Assets Liabilities 31.12.12 M CHF 31.12.13 31.12.12 restated M CHF 31.12.13 restated Property, Plant & Equipment 20.5 25.6 Capital 16.8 16.2 Intangible assets
Slide 12: Net cash position
Net cash position Improved operating cash flows Net cash position trend Net adjusted cash flows trend* 400 60 M CHF Financial debts* Unavailable cash, non-current Movements in exchange rates M CHF 50 Other liquid assets Cash and cash equivalents 15 300 Net cash flows - financing activities 40 21 26
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 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011* 2012* 2013* *Restated for IFRS 11 and IAS 19R Shareholders
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: Implementation of new accounting standard
Implementation of new accounting standard Reduce total assets with an increase of net profit Group share Total assets bridge • Total assets at 31.12.12 reduced by a net amount of CHF 614.8m M CHF IFRS impact or 37.3% 1'648.7 -37.3% • Net assets now presented as equity investments which increased by
Slide 17: 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 6.4% or CHF 59.7m in 2013 (5.8% -5.8% New IFRS 1'017.5 or CHF 59.1m in 2012 958
Slide 18: Shareholding structure
Shareholding structure Founder background Simplified legal structure At 31 December 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
Compagnie Financière Tradition — FY2013 Earnings Presentation on 6ix