Compagnie Financiere Tradition Sa · SIX:CFT

Compagnie Financiere Tradition Sa — H1 2004 Earnings Presentation

46 slides from Compagnie Financiere Tradition Sa's earnings presentation, Sep 17, 2004

  1. Slide 1: First-Half results 2004

    First-Half results 2004 - 17 September 2004 -

  2. Slide 2: Introduction, Our business, First-half turnover 2004

     Introduction  Our business  First-half turnover 2004  First-half operating results 2004  First-half net profit 2004  Balance sheet at 30.06.2004  Share performance  Outlook

  3. Slide 3: Compagnie Financière Tradition

    Compagnie Financière Tradition  World’s No. 3 interdealer broker,  1,800 employees, including 1,350 brokers,  A presence in sixteen countries; over 70% of revenues generated through the three major financial centres – London, New York and Tokyo,  Corporate ethos built on development and innovati

  4. Slide 4: Key figures (CHF million)

    Key figures (CHF million) Annual Half-year 900 829.2 791.5 786.1 750 645.1 Turnover: 600 496.6 442.4 CHF 442.4 million 450 433.9 408.4 387.7 300 318.3 236.8 150 0 1999 2000 2001 2002 2003 2004 50 46.7 Annual Half-year 100 Annual Half-year 85.1 38.4 42.1 80 40 61.1 31.8 52.1 54.4 28.0 60 30 28.1 54.1

  5. Slide 5: Key figures

    Key figures With solid fundamentals - a sharp rise in turnover, improved operating margin and Group share of net profit ahead - Compagnie Financière Tradition consolidated its position as the world’s No. 3 broker.

  6. Slide 6: Our business

     Introduction  Our business  First-half turnover 2004  First-half operating results 2004  First-half net profit 2004  Balance sheet at 30.06.2004  Share performance  Outlook

  7. Slide 7: Compagnie Financière Tradition: providing liquidity in financial markets

    Compagnie Financière Tradition providing liquidity in financial markets Money Brokers ICAP (801)* Stock exchanges Tullett (427)* Euronext (666)* CFT (357) Financial futures Deutsche Börse (954)* LSE (237)* markets OM Gruppen (122)* Eurex Liffe Financial Markets Information ATS Banks & Financial Inst

  8. Slide 8: CFT

    In its role as a marketplace, Compagnie Financière Tradition offers a neutral and independent service by organising liquidity (financial instruments and transactions) for its clients. Money Brokers Stock CFT exchanges Financial futures Euronext (666)* markets Deutsche Börse (954) Eurex * Liffe LSE (

  9. Slide 9: CFT

    Money Brokers Stock CFT exchanges Financial futures Euronext (666)* markets Deutsche Börse (954) Eurex * Liffe LSE (237)* OM Gruppen (122)* Information providers Banks & Financial Institutions ATS Bloomberg Market makers Instinet (603) Reuters Own account traders E-Speed (87) Arbitragers Teasurers E

  10. Slide 10: A tradition of development and innovation

    Compagnie Financière Tradition a tradition of development and innovation CFT established Listed on the stock exchange CFT launched the Forward Rate Agreement CFT initiated the first transactions on the OTC market for oil derivatives in London First broker to open a representation office in China Inv

  11. Slide 11: A tradition of development and innovation

    Compagnie Financière Tradition a tradition of development and innovation Platform for financial products www.gaitame.com

  12. Slide 12: Tradindex.com

    Tradindex.com

  13. Slide 13: Economic environment H1 2004

    Economic environment H1 2004 Volatility trends since January 2003 28 55 26 50 24 45 22 40 20 35 18 30 16 25 14 20 12 15 10 10 01/03 02/03 03/03 04/03 05/03 07/03 08/03 09/03 10/03 11/03 01/04 02/04 03/04 04/04 06/04 07/04 Lehm an Brothers Sw aption volatility index, l. scale VDAX volatility index, r

  14. Slide 14: First-half turnover 2004

     Introduction  Our business  First-half turnover 2004  First-half operating results 2004  First-half net profit 2004  Balance sheet at 30.06.2004  Share performance  Outlook

  15. Slide 15: Turnover of CHF 442.4 million

    Turnover of CHF 442.4 million Annual Half-year 900 829.2 791.5 786.1 750 645.1 600 496.6 442.4 450 433.9 408.4 387.7 300 318.3 236.8 150 0 1999 2000 2001 2002 2003 2004 A rise of 14.1% at current exchange rates (13.7% at constant exchange rates)

  16. Slide 16: Turnover: a diversified portfolio of products

    Turnover A diversified portfolio of products Money market and Money market and 52.6% interest rate and currency interest rate 49.7% derivatives and currency derivatives 38.4%  Money market 40.3% Securities and futures  Interest rate derivatives 7.8%  Currency options Commodities 8.3% Securities a

  17. Slide 17: Turnover: product trends

    Turnover Product trends Money market and H1 2004: CHF 232.5m interest rate and H1 2003: CHF 192.6m currency derivatives H1 2004 / H1 2003: + 20.7% 52.6% (+ 20.1% at constant exchange rates) H1 2004: CHF 169.7m Securities and futures H1 2003: CHF 156.2m 38.4% H1 2004 / H1 2003: + 8.6% (+ 8.2% at cons

  18. Slide 18: Turnover: product trends

    Turnover Product trends Money market and H1 2004: CHF 232.5m interest rate and H1 2003: CHF 192.6m currency derivatives H1 2004 / H1 2003: + 20.7% 52.6% (+ 20.1% at constant exchange rates) Strong growth stimulus in interest rateH1derivatives 2004: CHF business 169.7m Securities (+21.8% and futures

  19. Slide 19: Turnover: product trends

    Turnover Product trends Money market and H1 2004: CHF 232.5m interest rate and H1 2003: CHF 192.6m currency derivatives H1 2004 / H1 2003: + 20.7% 52.6% (+20.1% at constant exchange rates) H1 2004: CHF 169.7m Securities and futures H1 2003: CHF 156.2m 38.4% H1 2004 / H1 2003: + 8.6% (+ 8.2% at const

  20. Slide 20: Turnover: product trends

    Turnover Product trends Money market and H1 2004: CHF 232.5m interest rate and H1 2003: CHF 192.6m currency derivatives H1 2004 / H1 2003: + 20.7% 52.6% (+ 20.1% at constant exchange rates) Energy products grew 9.8% : increase H1of2004: electricity CHF and natural gas 169.7m Securities turnover and

  21. Slide 21: Turnover: a balanced geographic spread

    Turnover A balanced geographic spread LONDON BRUSSELS FRANKFURT STAMFORD BEIJING  LUX EMBOURG  TOKYO   NEW YORK  PARIS  HONG KONG  SINGAPORE   MUNICH  LAUSANNE JOHANNESBOURG SYDNEY  MILAN BUENOS AIRES   LISBONNE 18.1% H1 2004 The sharp rise Asia - Pacific 17.8% in first-half turnover re

  22. Slide 22: First-half operating results 2004

     Introduction  Our business  First-half turnover 2004  First-half operating results 2004  First-half net profit 2004  Balance sheet at 30.06.2004  Share performance  Outlook

  23. Slide 23: Operating profit

    Operating profit 90 85.1 Annual 80 Half-year 70 61.1 60 52.1 54.4 54.1 50 35.3 44.3 40 38.5 37.9 30 32.5 20 20.3 10 0 1999 2000 2001 2002 2003 2004 Operating profit up 16.9% at CHF 44.3 million

  24. Slide 24: Operating profit

    Operating profit % CHF million H1 2004 H1 2003 change Net turnover 442.4 387.7 14.1 Other operating income - 0.1 - 100 Operating income 442.4 387.8 14.1 Operating expenses - 398.0 - 349.9 13.7 Operating profit 44.3 37.9 16.8 Operating margin 10.0% 9.8% n/a

  25. Slide 25: Operating profit

    Operating profit % CHF million H1 2004 H1 2003 change Net turnover 442.4 387.7 14.1 Other operating income - 0.1 - 100 Operating income 442.4 387.8 14.1 Operating expenses - 398.0 - 349.9 13.7 Operating profit 44.3 37.9 16.8 Operating margin 10.0% 9.8% n/a

  26. Slide 26: Operating profit

    Operating profit % CHF million H1 2004 H1 2003 change Net turnover 442.4 387.7 14.1 Other operating income - 0.1 - 100 Operating income 442.4 387.8 14.1 Operating expenses - 398.0 - 349.9 13.7 Operating profit 44.3 37.9 16.8 Operating margin 10.0% 9.8% n/a Operating margin reached 10% of consolidate

  27. Slide 27: First-half net profit 2004

     Introduction  Our business  First-half turnover 2004  First-half operating results 2004  First-half net profit 2004  Balance sheet at 30.06.2004  Share performance  Outlook

  28. Slide 28: Net profit - Group share

    Net profit - Group share 50 46.7 Annual Half-year 38.4 42.1 40 31.8 28.0 30 28.1 20 16.7 21.9 17.8 15.7 10 11.3 0 1999 2000 2001 2002 2003 2004 Net profit - Group share up by CHF 42.1 million

  29. Slide 29: Net profit - Group share

    Net profit - Group share CHF million H1 2004 H1 2003 % Operating profit 44.3 37.9 16.9 Financial income - 2.1 5.2 - Profit before tax 42.2 43.1 - 2.1 Exceptional items 21.0 - - Tax - 16.5 - 15.9 - Associated undertakings 0.2 - 0.3 - Goodwill amortisation - 1.0 - 0.2 - Consolidated net profit 46.0 26

  30. Slide 30: Net profit - Group share: financial income

    Net profit - Group share Financial income CHF million H1 2004 H1 2003 % Operating profit 44.3 37.9 16.9 Financial income - 2.1 5.2 - Profit before tax 42.2 43.1 - 2.1 Exceptional items 21.0 - - Tax - 16.5 - 15.9 - Associated undertakings 0.2 - 0.3 - Goodwill amortisation - 1.0 - 0.2 - Consolidated

  31. Slide 31: Net profit - Group share: financial income

    Net profit - Group share Financial income CHF million H1 2004 H1 2003 % Operating profit 44.3 37.9 16.9 Financial income - 2.1 5.2 - Résultat courant avant impôt CHF thousand 42.2 43.1 - - - Income exceptionnel Résultat from investments 21.0 - - Net capital Impôt sur lesgains on investments and rés

  32. Slide 32: Net profit - Group share: exceptional items

    Net profit - Group share Exceptional items CHF million H1 2004 H1 2003 % Operating profit 44.3 37.9 16.9 Financial income - 2.1 5.2 - Profit before tax 42.2 43.1 - 2.1 Exceptional items 21.0 - - Tax - 16.5 - 15.9 - Associated undertakings 0.2 - 0.3 - Goodwill amortisation - 1.0 - 0.2 - Consolidated

  33. Slide 33: Net profit - Group share: exceptional items

    Net profit - Group share Exceptional items CHF million H1 2004 H1 2003 % Operating profit 44.3 37.9 16.9 Financial income - 2.1 5.2 - Profit before tax 42.2 43.1 - 2.1 Exceptional items 21.0 - - Tax - 16.5 - 15.9 - Gross profit Associated of CHF 27.5 million on the sale of its0.2 undertakings 2 Lau

  34. Slide 34: Net profit - Group share: tax expense

    Net profit - Group share Tax expense CHF million H1 2004 H1 2003 % Operating profit 44.3 37.9 16.9 Financial income - 2.1 5.2 - Profit before tax 42.2 43.1 - 2.1 Exceptional items 21.0 - - Tax - 16.5 - 15.9 - Associated undertakings 0.2 - 0.3 - Goodwill amortisation - 1.0 - 0.2 - Consolidated net p

  35. Slide 35: Net profit - Group share: tax expense

    Net profit - Group share Tax expense CHF million H1 2004 H1 2003 % Operating profit 44.3 37.9 16.9 Financial income - 2.1 5.2 - Profit before tax 42.2 43.1 - 2.1 Exceptional items 21.0 - - Tax - 16.5 - 15.9 - Résultat destax Profit before sociétés mises en équivalence 0,2 69.7 -0,3 43.1 -166,7 70.7

  36. Slide 36: Net profit - Group share

    Net profit - Group share CHF million H1 2004 H1 2003 % Operating profit 44.3 37.9 16.9 Financial income - 2.1 5.2 - Profit before tax 42.2 43.1 - 2.1 Exceptional items 21.0 - - Tax - 16.5 - 15.9 - Associated undertakings 0.2 - 0.3 - Goodwill amortisation - 1.0 - 0.2 - Consolidated net profit 46.0 26

  37. Slide 37: Balance sheet at 30.06.2004

     Introduction  Our business  First-half turnover 2004  First-half operating results 2004  First-half net profit 2004  Balance sheet at 30.06.2004  Share performance  Outlook

  38. Slide 38: Consolidated balance sheet

    Consolidated balance sheet ASSETS LIABILITIES CHF million 30.06.04 2003 CHF million 30.06.04 2003 Cash and mark. securities 199.0 232.1 Financial debts 56.3 67.0 Trade debtors 123.7 93.3 Other short term debts and 267.9 208.7 accrual Other receivables and 179.8 108.6 accruals Cont. & loss provisions

  39. Slide 39: Consolidated shareholders' equity

    Consolidated shareholders’ equity Consolidated shareholders’ equity of CHF 241.7 million 235.1 241.7 Minority interests 231.5 223.7 250 Group share Shareholders’ equity/ 200 176.4 total assets: 161.8 150 131.9 41.8% 219.6 100 189.1 196.1 202.4 110.2 133.3 146.6 Net cash position 50 at 30.06.2004: 0

  40. Slide 40: Share performance

     Introduction  Our business  First-half turnover 2004  First-half operating results 2004  First-half net profit 2004  Balance sheet at 30.06.2004  Share performance  Outlook

  41. Slide 41: Share performance

    Share performance Compagnie Financière Tradition share  Stock N° : 1,248,815  Listing : SWX Zurich  Number of shares : 5,401,369  Nominal value : CHF 2.50  Share capital : CHF 13.6 million  Outstanding : 27.49%  P/E 2003 : 15.2x  2003 Dividend : CHF 5.0  Yield 2003 : 4.7%* * At 7 September

  42. Slide 42: Share performance

    Share performance A annualised growth of stock price of 42.8%* since 31.12.96 125,0 140% 115,0 120% 105,0 95,0 100% 85,0 75,0 80% 65,0 55,0 60% 45,0 SMI CFT 40% 35,0 12/01 04/02 06/02 09/02 12/02 03/03 06/03 09/03 12/03 03/04 06/04 08/04 Since 31.12.01* Since 31.12.96 Annualised growth 96-04* CFT +

  43. Slide 43: High dividend policy

    High dividend policy Dividend per share* (CHF) 6 5.00 5 4.00 4 3 2.00 2 1.50 1.25 1.00 1 0 1998 1999 2000 2001 2002 2003  Yield 2003: 4.7% * Based on a share of CHF 2.50 nominal value

  44. Slide 44: Outlook

     Introduction  Our business  First-half turnover 2004  First-half operating results 2004  First-half net profit 2004  Balance sheet at 30.06.2004  Share performance  Outlook

  45. Slide 45: Outlook

    Outlook  Maintain organic growth of 5% over the medium-term,  Improve operating margin with target of 15% in the medium- term:  Increase flexibility of broker remuneration structure ,  General reduction in brokers’ pay-out ratios in an industry marked by medium-term consolidation,  Continue to

  46. Slide 46: First-Half results 2004

    First-Half results 2004 - 17 September 2004 -

Compagnie Financière Tradition — H1 2004 Earnings Presentation on 6ix