Compagnie Financiere Tradition Sa · SIX:CFT
Compagnie Financiere Tradition Sa — H1 2009 Earnings Presentation
26 slides from Compagnie Financiere Tradition Sa's earnings presentation, Sep 4, 2009
Slide 1: 2009 First Half Results
2009 First Half Results Zurich – 4 September 2009
Slide 2: Agenda
Agenda Introduction Financial Review Industry Dynamics Strategic Outlook Additional Information 2
Slide 3: Introduction
Introduction
Slide 4: Resilient semester in a challenging environment
H1 2009 performance at a glance Resilient semester in a challenging environment Net profit - Group Turnover EBITDA Operating profit Profit before tax share -5.7% -1.7%* +1.0% -8.0% -10.1% +16.6% 788.3 743.6 H1 2008 H1 2009 In CHF (m) Margin Margin 15.6% 12.4% 115.1 116.3 103.4 92.9 99.8 91.8 46.6 54
Slide 5: Overview of the impact of the crisis: markets heading to normalisation
Overview of the impact of the crisis Markets heading to some degree of normalisation Market volatility – Fixed income Market volatility – Equities 45 90 LBOX VIX 40 80 World market 35 70 capitalisation 30 60 25 50 In USD (trillions) 20 40 70 15 30 6 2 .6 10 20 5 8 .5 5 10 60 0 0 Jul-07 Oct-07 Jul-08
Slide 6: Radical shifts on the back of unprecedented crisis
Overview of the impact of the crisis Radical shifts on the back of unprecedented crisis NEW REALITY MARKET IMPACT Supranational Redefinition of role World reserve currency organisations Significant increase in power Downsizing of the US market Winners (for example China) Countries Real economy still
Slide 7: Financial Review
Financial Review
Slide 8: Revenues: good revenue performance in relation to sector
Revenues Good revenue performance in relation to sector Half year and yearly turnover Global positioning – Peer group In CHF (m) H1 2009 revenues, in CHF (m) 1,556.1 1,417.1 H1 H2 2,992 1310 1,144.4 767.8 740.4 2,295 Voice only 1003 872 788.3 (Voice 744 676.7 743.6 610 only) 462 2007 2008 2009 IAP (
Slide 9: Revenues by product
Revenues by product Product expertise across all asset classes Turnover by product – H1 2009 bridge In CHF (m) 800 788.3 Deposits, capital markets, forex, currency Rates options, emerging markets -4.0% +0.5% -1.9% 743.6 750 700 Futures and options, government bonds, credit derivatives, repos, equity
Slide 10: Revenues by geography
Revenues by geography Turnover by region - Breakdown Turnover by region – H1 2009 bridge Europe Americas Asia- Pacific In CHF (m) 100% All percentages based on 900 calculations in constant +17.3% currency terms 21.0% 22.8% 850 80% 800 788.3 60% 35.0% 30.7% 750 -22.3% 743.6 -7.4% 40% 700 650 44.0% 46
Slide 11: Group operating performance
Group operating performance Underlying operating margin of 11.2% Highlights Before amortisation Underlying decrease in operating and impairment of Non recurring items profit due to impact of investments in intangibles and Amortisation and exceptionals selected areas in the US and London impairment o
Slide 12: Operating ratios
Operating ratios Key operating ratios In % of turnover H1 2009 H1 2008 FY 2008 Compensation costs 68.6 66.7 66.9 - Operational 59.6 58.7 59.0 - Administrative 9.0 8.0 7.9 Variable/total 47.2 53.0 50.3 Telecom & market data 6.2 4.9 5.5 Travel/Business/Marketing 4.3 5.2 5.3 Rent 1.9 1.5 1.7 Other net
Slide 13: Net profit - Group share up 16.6%
Net profit - Group share Net profit - Group share up 16.6% In CHF (m) H1 2009 H1 2008 Operating profit 91.8 99.8 Net financial income -2.2 -0.9 Share of profit from equity participation 3.3 4.5 Profit before tax 92.9 103.4 Income tax -30.0 -44.6 Profit from continuing operations 62.9 58.8 After tax
Slide 14: Balance sheet: target of CHF 400m equity reached in H1
Balance sheet Target of CHF 400m equity reached in H1 Shareholders’ equity In CHF (m) 450 400 Total Group share 350 300 250 200 150 100 50 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (*) 2005 2006 2007 2008 H1 2009 *IFRS since 2004 **Treasury shares deducted from shareholders equity since 20
Slide 15: Net cash position: Tradition an industry benchmark
Net cash position Tradition an industry benchmark Cash and leverage – peer group In CHF (m) In CHF (m) 30.6.09 31.12.08 IAP Cash & cash equivalents 447.0 378.8 Financial assets @ fair 10.7 8.7 value TLPR Financial debt * -176.3 -185.3 CF T Adjustments linked to variances in AH & MP 12.7 -1.3 activit
Slide 16: Industry Dynamics
Industry Dynamics
Slide 17: Interdealer Brokers have an attractive business model
Business model Interdealer Brokers (IDB) have an attractive business model An industry designed to quickly IDBs well placed to take respond to clients’ needs advantage of current market – The restructuring of global financial market infrastructure Key liquidity providers will create opportunities –
Slide 18: IDBs stock price have performed well since the beginning of the year
Market structure valuations IDBs stock price have performed well since the beginning of the year 2008 and year to date stock performance Market capitalisation - Peer group In USD (bn) 2008 YTD 2009 as of 28/8/2009 10 NITE 31/12/2008 28/08/2009 31/12/2007 IGG 9 IBKR 8 NDAQ ITG 7 IC E 6 IAP DB1Gn 5 C
Slide 19: Further convergence / consolidation expected
Market structure environment Further convergence / consolidation expected Competition and convergence at the same time – Trades move from bilateral to centrally cleared settlement – Regulatory pressure to move OTC contracts « on-exchange » – The exchange model – usually a natural monopoly – IDBs are
Slide 20: Zoom on regulators and policy makers' agenda
Regulation Zoom on regulators and policy makers’ agenda OTC derivatives – Objective to ensure efficient, safe and sound derivatives markets • Focus on clearing, trade reporting, regulation of trading venues, capital incentives/penalties – A different approach taken in the US, Europe and Asia • Tight
Slide 21: IDBs welcome the development of OTC clearing
Regulation IDBs welcome the development of OTC clearing Clearing through central counterparties (CCPs) exists – IDBs channel voice trades to CCPs whenever possible – Clear benefits for market participants and regulators • Costs benefits and balance sheet efficiencies • Liquidity growth by virtue of
Slide 22: Strategic Outlook
Strategic Outlook
Slide 23: Corporate strategy is focused on core strengths
Strategic outlook Corporate strategy is focused on core strengths Price discovery - Liquidity development - Distribution Prepared to make the best out of a challenging year – Closely monitoring market environment • Economic uncertainty remains, global slump challenges policies • Condition of the ban
Slide 24: Balanced strategy: growth, profit, balance sheet
Strategic outlook Balanced strategy: growth, profit, balance sheet Strategy consistent over the years Solid foundations – Critical size and global reach • Diversity of products and geographies • Track record of organic growth • Sizeable market share – Defensive balance sheet • Small level of goodwil
Slide 25: Additional Information
Additional Information
Slide 26: Sources, definitions, FX rates and tickers
Additional information Sources, definitions, FX rates and tickers Company Ticker CME Group CME Compagnie Financière CFT Tradition (Tradition) Deutsche Börse DB1Gn GFI Group GFIG ICAP IAP IG Group IGG Intercontinental ICE Exchange Interactive IBKR Brokers Investment Technology ITG Group Knight Capita
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