Compagnie Financiere Tradition Sa · SIX:CFT
Compagnie Financiere Tradition Sa — H1 2014 Earnings Presentation
17 slides from Compagnie Financiere Tradition Sa's earnings presentation, Sep 1, 2014
Slide 1: Compagnie Financière Tradition H1 2014 results presentation
Compagnie Financière Tradition H1 2014 results presentation Zurich 1 September 2014
Slide 2: Low volatility environment and evolving market structure
Low volatility environment and evolving market structure Operating margin up to 6.3% from 6.0% Results at a glance H1 2014 Performance M CHF • Continued development and positioning of Tradition SEF in the (Variation at constant rates) US with gradual implementation of “Made Available to Trade “ 425.
Slide 3: The compounded impact of post-Lehman new regulations
The compounded impact of post-Lehman new regulations A new reality for IDB’s core clients forcing them to develop a new vision Basle 3 Minimise use of capital What it means for the =>Reduced risk appetite IDBs =>Shrinking inventories Optimise cash/collateral =>Focus on ROE by business line • Continu
Slide 4: The SEF landscape
The SEF landscape US trading mandate since Feb 14, IDBs are key contenders in Interest Rate and FX Volume by week 100% In billions notional USD* 90% Others 80% TW/DW 70% 60% Bloomberg 50% GFI 40% 30% BGC 20% Tradition* 10% 0% Tullett Prebon Interest Rate (non- FX ICAP FRA) MAT** products can no long
Slide 5: Ongoing investments in distinctive technology
Ongoing investments in distinctive technology Award-winning platforms with Trad-X and ParFX • 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 products • Focus on d
Slide 6: Successfully launched new electronic initiatives
Successfully launched new electronic initiatives Increased number of market participants •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 wel
Slide 7: Revenue overview
Revenue overview Improving market share despite reduction in IDB revenue Group half-year revenue Half-year revenue by business M CHF M CHF IDB (H1/H1 variation at constant rates) Joint ventures 496.6 -7.8% H1 2013 H2 2013 H1 2014 Subsidiaries 444.4 Non-IDB 414.5 34.9 -37.2% 26.9 24.8 14.2 475.9 398.
Slide 8: 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: (H1/H1 variation
Slide 9: Revenue by product
Revenue by product Overall reduction in all asset classes with mixed regional evolution IDB revenue by product IDB Revenue trend M CHF (variation at constant rates) 250 (H1/H1 variation at constant rates) M CHF -4.9% -4.9% H1 2013 H2 2013 H1 2014 -10.9% -9.3% 200 496.6 444.4 -10.9% H1 2013 Rates Sec
Slide 10: IDB underlying operating margin down to 7.8% from 8.3%
IDB underlying operating margin down to 7.8% from 8.3% Continued focus on costs reduction, above CHF 100m net over the last 24 months Underlying operating profit IDB Headcount margin Exceptional items Non IDB IDB Support Front office staff M CHF 9.1% 5.7 7.9% 1.1 1'765 1'622 1'531 1'488 1'472 3.1% 4
Slide 11: Net profit – Group share of CHF 16.4m
Net profit – Group share of CHF 16.4m Impact from net financial result Reported operating profit M CHF H1 2014 H1 2013 Var cst. Var cur. Underlying adjusted operating profit 35.8 46.7 -23.5% -20.7% Amortisation of intangibles -0.5 -2.0 Net exceptional expenses -4.6 -6.4 Adjsuted operating profit 30.
Slide 12: Consistent focus on sound balance sheet and capital position
Consistent focus on sound balance sheet and capital position Consolidated equity – Group share increase to CHF 305.8m Assets Liabilities M CHF 30.06.14 31.12.13 M CHF 30.06.14 31.12.13 Property, Plant & Equipment 18.2 20.5 Capital 16.8 16.8 Intangible assets 48.1 48.6 Share premium 27.8 44.2 Investm
Slide 13: Net cash position
Net cash position Improved adjusted operating cash flows to CHF 48.2m Net cash position trend Net adjusted cash flows trend* 400 60 M CHF Financial debts* Unavailable cash, non-current M CHF 2 4 Other liquid assets Cash and cash equivalents 40 300 26 20 15 48 29 27 20 20 14 19 200 17 8 - -5 -4 236 1
Slide 14: Shareholders’ equity and capital structure
Shareholders’ equity and capital structure Significantly differentiates the Group from its competitors Shareholders’ equity trend M CHF 400 Total Group share 300 200 100 0 *Restated for IFRS 11 and IAS 19R Shareholders’ equity – Group share bridge Capital structure comparison1 M CHF CFT Goodwill / S
Slide 15: 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 16: Appendix
Appendix = a Global Leaders In Interdealer Broking | radition
Slide 17: Shareholding structure
Shareholding structure Founder background Simplified legal structure At 30 June 2014 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 1979
Compagnie Financière Tradition — H1 2014 Earnings Presentation on 6ix