Compagnie Financiere Tradition Sa · SIX:CFT
Compagnie Financiere Tradition Sa — H1 2005 Earnings Presentation
41 slides from Compagnie Financiere Tradition Sa's earnings presentation, September 2005
Slide 1: Financial Results at 30 June 2005
Compagnie Financière Tradition Financial Results at 30 June 2005 Swiss GAAP
Slide 2: 1. Introduction
1. Introduction 2. Company and market developments in H1 2005 3. Financial results at 30 June 2005 4. Impact of conversion to IFRS 5. Stock market data 6. Outlook Compagnie Financière Tradition 2
Slide 3: Continued growth path in H1 2005
Continued growth path in H1 2005 Revenues up again in H1 2005: +7.2% at constant exchange rates 4.2% rise at variable exchange rates Development particularly strong in Asia (+26%), interest rate products (+7%) and commodities (esp. energy: +19%), as well as in new business segments (Gaitame in Japan
Slide 4: 2. Company and market developments in H1 2005
1. Introduction 2. Company and market developments in H1 2005 3. Financial results at 30 June 2005 4. Impact of conversion to IFRS 5. Stock market data 6. Outlook Compagnie Financière Tradition 4
Slide 5: 2005, capital transformations driving strategic developments in the sector
2005, capital transformations driving strategic developments in the sector NASDAQ has become the top market for companies in the sector P/Es higher than on the LSE Successful flotation of GFI in January 2005 The No. 1 interdealer brokerage in futures markets is now a listed company Largest private e
Slide 6: Market developments: currencies, oil, equities and rates
1.37 $69.81 on 30 Aug 05 $1.3554 on 31 Dec 70 1.35 04 1.33 65 1.31 60 1.29 EUR/USD (leftaxis) 1.27 55 WTI Spot (right axis) 1.25 1.23 50 1.21 45 1.19 $42.12 on 03 Jan.05 1.1902 on 04 Jul 05 1.17 40 13500 3250 3200 13000 3150 12500 3100 3050 12000 3000 11500 DJ Ind. (left axis) 2950 Nikkei 225 (left
Slide 7: Rivalling in size with exchanges
Rivalling in size with exchanges De uts c he B o rs e E*Tra de R EF C O IC AP C o llins S te wa rt Tulle tt C o llins S te wa rt Tulle tt e xc l C S NYS E Euro ne xt Ins tine t Exchanges/equity platforms Am e ritra de C hic a go M e rc a ntile Exc ha nge IDBs C F T inc luding C ha pde la ine Na s da
Slide 8: Company overview
Company overview A unique approach to retail market in its sector Global expertise in Internet technology, also transposed in the wholesale markets Launched FXDD.com A financial spread in the U.S., betting company in launched in 2003 London, launched in for online forex 2003 Tradindex.com Gaitame.co
Slide 9: 3. Financial results at 30 June 2005
1. Introduction 2. Company and market developments in H1 2005 3. Financial results at 30 June 2005 4. Impact of conversion to IFRS 5. Stock market data 6. Outlook Compagnie Financière Tradition 9
Slide 10: Simplified profit and loss account
Simplified profit and loss account Half-year results - CHF m H1 2005 H1 2004 Variation Net turnover 460.8 442.4 +4.2% Other net operating income 3.4 Operating expenses -427.1 -398.1 +7.3% Operating profit 37.1 44.3 -16.4% 8.0% 10.0% Net financial income* 4.3 -2.7* Tax + results on assoc. undertaking
Slide 11: Simplified profit and loss account at constant exchange rates
Simplified profit and loss account at constant exchange rates Half-year results at rate prevailing on 30.6.05 - CHF m H1 2005 H1 2004 Variation Net turnover 474.4 442.4 +7.2% Other net operating income 3.4 Operating expenses -439.5 -398.1 +10.4% Operating profit 38.2 44.3 -13.7% 8.0% 10.0% Net finan
Slide 12: Turnover up 7.2% over H1 2004
Turnover up 7.2% over H1 2004 Annual Annual at constant exchange rates* Half year Half year at constant exchange rates* 849,7 CHF million 812,7 791,5 786,1 837,1 645,1 762,8 684,4 710,7 525,2 433,9 442,4 460,8 408,4 387,7 318,3 2000 2001 2002 2003 2004 2005 +4.2% at variable exchange rates +7.2% at
Slide 13: Turnover by geographic region
Turnover by geographic region Asia-Pacific H1 turnover in 2004 and 2005 (CHF m and %) 18% United Kingdom 32% 100.9 Asia-Pacific +26% 80.2 2004 20% 64.1 Continental Europe Continental -26% Europe 86.4 31% United States United 165.3 +18% Kingdom 140.2 Continental Europe United 130.5 -4% States 135.6 1
Slide 14: Turnover by product segment
Turnover by product segment Commodities & H1 turnover in 2004 and 2005 (CHF m and %) others activities 9% Forex & Commodities 61,4 interest rates +53% Equities & & others 2004 40,2 derivatives 53% activites 38% Equities and 150,5 -11% derivatives 169,7 Currency & 248,9 Commodities & +7% interest rat
Slide 15: Main factors influencing turnover
Main factors influencing turnover H1 turnover in 2004 and 2005 (CHF m and %) Money markets, and H1 2005 : CHF 248.9m interest rate and H1 2004 : CHF 232.5m currency derivatives H1 2005 / H1 2004 : + 7.1% (+ 10.4% at constant exchange rates 54.0% New teams drive strong improvement in money market S1
Slide 16: Main factors influencing turnover
Main factors influencing turnover H1 turnover in 2004 and 2005 (CHF m and %) Marché Buoyant monétaire activities S1 2005for in London, which now accounts : MCHF 38.1%248.9 of revenues in etbut the sector, dérivés de taux were down S1and in continental Europe 2004 : MCHF New York.232.5 The Asia - etg
Slide 17: Main factors influencing turnover
Main factors influencing turnover H1 turnover in 2004 and 2005 (CHF m and %) Money markets, and S1 2005 : MCHF 248.9 interestrose Commodities rate16.2% and on the back of S1 2004 :rise a 19.0% MCHF 232.5 activities. in energy Energycurrency derivatives activities were S1 2005 buoyed by the electrici
Slide 18: Operating margin: 8.0%
Operating margin: 8.0% Operating profit 2000-2005 (CHF m) 85.1 Annual Half year 61.1 52.1 54.4 54.3 54.1 44.3 38.5 37.9 37.1 32.5 2000 2001 2002 2003 2004 2005 Operating margin: 8.0% at 30.6.2005 6.4% at 31.12.2004 10.0% at 30.6.2004 Compagnie Financière Tradition 18
Slide 19: Analysis of operating margin
Analysis of operating margin As % of consolidated turnover H1/2005 FY/2004 H1/2004 Personnel costs - operational 61.4 61.8 60.1 Personnel costs - administrative 7.2 7.0 6.7 Telecoms & Data 7.2 7.7 7.2 Business development 5.6 5.7 5.5 Premises 2.2 2.1 2.1 Amortisation 1.4 1.3 1.2 Other net expenses 7
Slide 20: Continental Europe and certain diversification operations weighed on operating margin
Continental Europe and certain diversification operations weighed on operating margin As % of operating profit 2002-2005 CFT Total CFT adjusted 12.0 10.9 9.7 10.0 9.2 8.9 7.8 8.0 6.9 6.5 2002 2003 H1/2004 2004 H1/2005 Impact on margin -2.1 -1.9 -2.0 -2.4 -2.9 Revenue weighting 18% 18% 19% 18% 14% Ma
Slide 21: Several measures impacted profitability in first half 2005
Several measures impacted profitability in first half 2005 Operating performance impacted by loss-making operations – measures undertaken Objective: tightly rein in loss-making operations and press ahead with improving margins in core business. Example: restructuring costs of CHF 4.0 million for the
Slide 22: Group share of net profit: CHF 18.6m
Group share of net profit: CHF 18.6m Group share of net profit 2000-2005 (CHF m) Annual Half year 50.5* 46.7 38.4 41.5* 31.8 28 28.1 25 21.9 20.5 17.8 18.6 15.7 2000 2001 2002 2003 2004 2005 Excluding exceptionals (disposal of buildings in 2004): CHF -1.9m (H1 04 / H1 05) * Incl. exceptional income
Slide 23: Analysis of financial income
Analysis of financial income Half-year – CHF m 2005 2004 Remarks Net financial interest 734 272 Interest charges of CHF 1,693 at 30.6.05 Other financial income 706 -89 Security lending TAsiel: 416 Exchange rate gains (losses) 2,206 -2,520 +/- on marketable securities 419 128 Revenues from marketable
Slide 24: Tax rate
Tax rate CHFm and % H1/2005 FY/2004 H1/2004 Profit before tax 41.4 52.6 41.7 Standard tax rate 32.1% 34.7% 37.2% Group effective tax rate 36.8% 44.0% 39.6% Effective tax rate of 36.8% an improvement on 2004: weaker impact of non-deductible expenses and exceptional items in 2004 Compagnie Financière
Slide 25: Simplified balance sheet
Simplified balance sheet CHF m HY/2005 FY/2004 Variation Liquid assets and investments 199.1 195.3 +2.0% Brokerage receivables 145.8 105.3 +38.5% Other rec’bles, accrued inc. + ppd expense 418.1 241.3 +173.3% Fixed assets 74.8 73.9 +1.2% Total assets 837.8 615.8 36.1% Bank borrowings 83.3 49.3 +69.0
Slide 26: Net cash position
Net cash position CHFm HY/2005 FY2004 Variation Cash and call deposits 137.4 124.6 +12.8% Short-term deposits 34.6 31.2 +3.4% Investment securities 27.1 39.5 -12.4% Short-term bank borrowings -83.3 -49.3 -34.0% Net cash inflow (outflow) 115.8 146.1 -30.3% Compagnie Financière Tradition 26
Slide 27: Movements in shareholders' equity
Movements in shareholders’ equity Movements in shareholders’ equity 31.12.2004 – 30.6.2005 (CHFm) 0.2 1.4 32.1 18.6 7.8 225.5 215.8 13.8 + 4.0% since 31.12.2004 Shareholders' Capital Dealings in Dividend Translation Half year Change Shareholders' equity at increase treasury adjustments result minori
Slide 28: 4. Impact of conversion to IFRS
1. Introduction 2. Company and market developments in H1 2005 3. Financial results at 30 June 2005 4. Impact of conversion to IFRS 5. Stock market data 6. Outlook Compagnie Financière Tradition 28
Slide 29: General comments
General comments Compagnie Financière Tradition’s first-time adoption of IFRS in financial statements for year ending 31 December 2005 Application of transitional provisions (see next page) Purpose of this presentation: restatement of accounts at 31.12.2004 and main impact 1. Opening balance sheet a
Slide 30: General comments: IFRS timeline
General comments Beginning of first Transition date First IFRS reporting IFRS reporting Opening balance sheet date period 1.01.04 31.12.04 31.12.05 Comparison period: First IFRS reporting: presentation of restatement of presentation in 2005 financial accounts 2004 (September statements (spring 2006)
Slide 31: Application of transitional provisions
Application of transitional provisions IFRS 1 – On first-time adoption of IFRS, grants limited exemptions from full retrospective application during the transition period Compagnie Financière Tradition has applied the following exemptions: IAS 21 – Effects of Changes in Foreign Exchange Rates: the c
Slide 32: Key points in the transition to IFRS
Key points in the transition to IFRS for Compagnie Financière Tradition IFRS have a positive impact on net profit but an insignificant effect on shareholders’ equity Slight reduction in Group share of shareholders’ equity (-CHF 3.5 million or -1.7% at 31.12.2004 compared to Swiss GAAP reporting) Sta
Slide 33: Key figures: balance sheet
Key figures: balance sheet CHFm at 31.12.2004 Balance sheet total Shareholders’ equity - Group -1.7% 84,742 204.6 201.1 316 Swiss IFRS Swiss IFRS GAAP GAAP Compagnie Financière Tradition 33
Slide 34: Key figures: profit & loss
Key figures: profit & loss CHFm at 31.12.2004 Net profit - Group share Operating profit +6.4% -9.0% 81.6* 50.5 53.8 54.3 49.4 Swiss IFRS Swiss IFRS GAAP GAAP * Exceptional impact of reclassification and restatement of income on the disposal of buildings Compagnie Financière Tradition 34
Slide 35: In brief
In brief Introduction of IFRS will have positive impact on results Treatment of transactions related to principal activities produces a strong increase in balance sheet total First-time financial statements 31.12.2005 Compagnie Financière Tradition 35
Slide 36: 5. Stock market data
1. Introduction 2. Company and market developments in H1 2005 3. Financial results at 30 June 2005 4. Impact of conversion to IFRS 5. Stock market data 6. Outlook Compagnie Financière Tradition 36
Slide 37: Stock market data
Stock market data Compagnie Financière Tradition shares Stock No. : 1,248,815 Listing : SWX Zurich No. of shares : 5,468,755 Nominal value : CHF 2.50 Capital : CHF 13.7 million Free float : 30.30% P/E 2004 : 13.26x Dividend 2004 : CHF 6.0 Yield 2004 : 4.90%* * Based on a rate of CHF 122.6 Compagnie
Slide 38: Annualised increase in share price: 41.0% since September 1996
Annualised increase in share price: 41.0% since September 1996 %125 120 119.2% CFT SMI 115 109.5% 110 105 100 95 004 005 005 0 05 005 005 005 0 05 12/2 02/2 03/2 04/2 06/2 07/2 08/2 09/2 Since 31.12.04* Since 31.12.96* Annualised increase 96-05* CFT + 9.5 % + 1 828.6 % + 41.0 % SMI + 19.2 % + 72.1 %
Slide 39: CFT offers the best direct yield on the SWX
CFT offers the best direct yield on the SWX Dividend per share in CHF 7,0 6,00 6,0 5,00 5,0 4,00 4,0 3,0 2,00 2,0 1,50 1,25 1,00 1,0 0,0 1998 1999 2000 2001 2002 2003 2004 Yield 2004 : 4.90% * Based on a share of CHF 2.50 nominal ** Based on a rate of CHF 122.6 Compagnie Financière Tradition 39
Slide 40: 6. Outlook
1. Introduction 2. Company and market developments in H1 2005 3. Financial results at 30 June 2005 4. Impact of conversion to IFRS 5. Stock market data 6. Outlook Compagnie Financière Tradition 40
Slide 41: Objectives for next 18 months
Objectives for next 18 months Sustained organic growth Acquisition of medium-size players Improve margin Tackle loss-making operations Compagnie Financière Tradition 41
Compagnie Financière Tradition — H1 2005 Earnings Presentation on 6ix