Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — FY2005 Earnings Presentation
14 slides from Singapore Exchange's earnings presentation, Jul 28, 2005
Slide 1: FY2005 Full Year Results Presentation
Singapore Exchange Limited FY2005 Full Year Results Presentation Hsieh Fu Hua, CEO Seck Wai Kwong, CFO Singapore Exchange 28 July 2005 1 Agenda 1. Highlights 2. Financial Review 3. Strategy Update 4. Q & A 2 1
Slide 2: Highlights
Highlights Hsieh Fu Hua Chief Executive Officer 3 Highlights • Superior ROE of 23.1% on profit of $109.5M • Another record for IPO & funds raised • Continued success in REITs • Exponential growth in structured warrants • Successful migration to electronic platform • Continued cost and capital manage
Slide 3: Financial Highlights: FY2005
Financial Highlights: FY2005 Meeting expectations … Market Performance Expectations(1) Net NetProfit ProfitAfter AfterTax Tax S$108.2M S$109.5M Operating OperatingRevenue Revenue S$272.3M S$274.7M Operating OperatingExpenses Expenses S$138.0M S$138.0M Return (2) Returnon onEquity Equity(2) 20.2% 23.
Slide 4: Financial Highlights: Overview
Financial Highlights: Overview A creditable FY 2005 … Operating Operating Net Profit Revenue Expenses After Tax ( in S $M ) 316 320 Change 280 275 From FY04 240 229 Operating Revenue 13.1% 217 219 200 171 Operating Expenses 7.9% 166 160 145 150 133 138 120 109 Net Profit After Tax 17.7% 80 61 49 2.6
Slide 5: Income Statement
Income Statement Creditable profits despite lower revenue … % (in S$M) FY05 FY04 Change Securities Trading Operating Revenue 274.7 316.3 13.1 Operating Expenses 138.0 149.9 7.9 Derivatives Trading Operating Profit 136.7 166.4 17.9 Net Non-Operating Revenue 3.0 (0.3) NM Net Profit Before Tax & MI 139
Slide 6: Derivatives Trading
Derivatives Trading (Review period: 1Q FY04 to 4Q FY05) Structured warrants … 2,500 Futures Volume (MM contracts) 2,000 1,500 1,000 500 - 1QFY04 2QFY04 3QFY04 4QFY04 1QFY05 2QFY05 3QFY05 4QFY05 11 Derivatives Trading (Review period: 1Q FY04 to 4Q FY05) Our Asian derivatives contracts … 3 Futures Vol
Slide 7: Operating Revenue
Operating Revenue Well diversified & resilient revenues … (In S$M) SESOPs terminal fees Eurodollar futures 176 Securities Trading 144 91 Access Fees Asian Derivatives 50 50 43 Structured Warrants Listing Fees 85 90 81 Data Services Fees FY 2003 FY 2004 FY 2005 Processing income Stable Revenue* Net D
Slide 8: Operating Expenses
Operating Expenses Decreased steadily … Continued Cost Management (In S$M) 166 ü Variable bonus & 150 headcount 26 18 138 10 ü Computer maintenance 13 20 22 11 Miscellaneous* ü Renegotiated service 18 costs 15 Cost of 21 17 sales ü Fully depreciated 17 assets 17 15 Depreciation 16 System ü Professio
Slide 9: Our Dividend Policy
Our Dividend Policy Robust capital management … Net dividend per share 12 (cents) Net dividend per share (cents) 10 • Base dividend • 6.0 cents from 5.6 cents 8 5.20 2.50 4.3 • Proposed FY05 dividend 6 • Base : 1.8 cents 1.80 • Variable : 2.5 cents 4 • Proposed final : 4.3 cents • Interim (YTD) : 4.
Slide 10: Building An Enduring Marketplace
Building An Enduring Marketplace Asian Gateway Domestic Growth Exchange Exchange Alliances Alliances Asian Equity Singapore Equity Derivatives & Derivatives Commodities Clearing Services CDP Services Foreign Listings Singapore Listings Members & Members & Retail Institutions Investors Market-oriente
Slide 11: Delivery Excellence
Delivery Excellence Developing electronic derivatives trading … • Imperative to migrate from floor trading to electronic § Closed NK pit in Mar 05 and TW pit in Jun 05 • More Diverse Market Users § Electronic Locals § Corporate Proprietary Trading Members § Clearing Member • Products: § e-NK -> Mark
Slide 12: Developing an Asian Gateway
Developing an Asian Gateway Asian listing platform for growth companies … • Greater China IPOs - Continuing focus on larger companies 210 190 170 150 130 110 HK All Red Chips SIN All China Shares STI 90 HSI 70 Ju 03 Au -03 Ju 04 Au -04 Ju 05 Fe 0 3 Ju 3 Fe 0 4 Ju 4 Fe 0 5 05 M 03 Ap 03 O 03 D -03 Ja
Slide 13: Growing Our Domestic Market
Growing Our Domestic Market New product successes to grow retail investors … • Structured Warrants FY 2003 FY 2004 FY 2005 No. of issues @ 30 June 2 27 252 No. of units traded 62.4M 0.8B 19.3B Value traded S$9.4M S$0.2B S$5.4B • REITs FY 2003 FY 2004 FY 2005 Market capitalisation @ 30 June S$1.5B S$
Slide 14: In summary
In summary … • Revenue Growth – Strong Listings Pipeline • Larger issuers – Re-Pricing Opportunities – Structured Warrants – New Products • Capital Management • More Buoyant Market….. 27 Panel: 1. Hsieh Fu Hua, CEO 2. Seck Wai Kwong, CFO 28 14