Kurzbericht zum 31. Dezember Abridged Report as at 31 December

Transcription

1 Kurzbericht zum 31. Dezember 2013 Abridged Report as at 31 December

2 The First Half Of Financial Year 2013/2014 Steubing AG has a respectable result to report for the first six months of the financial year 2013/2014 with a provisional surplus of 617,000. Gross earnings increased by around 21% to 10.4 million, while trading costs rose by a no more than moderate 2.4%, resulting in a pre-tax profit of around 1 million. This however does not take in to account the allocation required by law to a separate item heading for the General Banking Risk Fund. All of the company s figures showed a marked improvement over the year before. Half Year figures at a glance (in k) 2011/ / /14 Gross earnings before trading costs 8,414 8,592 10,410 Gross earnings after trading costs 6,640 7,266 9,052 Earnings before taxes ,014 Provisional annual surplus ,000 10,000 in k 8,000 6,000 4,000 2,000 0 Gross earnings before trading costs Gross earnings after trading costs Earnings before taxes Provisional annual surplus 2011/ / /2014

3 Steubing AG Business Units Trends The continuing development of activities in the Debt Capital Markets segment with a focus on all-round support for SME bond issues has had positive effects from the very start: Since September, five bonds have been fully placed and successfully launched on the market, for Helma Eigenheimbau AG ( 25 million), Alfmeier Präzision AG ( 30 million), PORR AG ( 50 million), Vedes AG ( 12 million) and HanseYachts AG ( 5 million). Steubing AG s business philosophy of offering its customers sophisticated products and services is proving equally effective in the SME bond market. This segment has continued to develop in recent months, despite having been the subject in some case quite rightly so of critical media reporting. The number of issues contin - ued to increase, with funds, indices and certificates being launched. On the other hand the growing number of insolvencies, predominantly among issuers of the early days of this market segment, has also aroused negative comment and price volatility. This clearly illustrates the importance of the detailed and thorough selection and support of SMEs in this aspect of financing. We are however convinced that our strategy of meticulous care will enable us to continue to successfully develop our services for issuers and investors. With the advent of the Steubing German Mittelstand Fund I (SGMF I), Steubing AG as investment manager has designed a fund which invests exclusively in bonds issued by SMEs in the German-speaking region. The UCITS IV fund is even tighter in its interpretation of the already strict rules, investing in a maximum of 5% of any issue and holding a permanent cash quota of 10%. Other central elements of the concept include permanent contacts with the companies concerned and the preparation of our own research reports. The team is working hard to increase the volume of the fund which currently stands at around 10 million and establish a positive track record. Since the fund was established in August 2013 its performance in comparison with the MiBox reference index has been consistently positive, although it has been unable to entirely distance itself from the some - times turbulent market environment, particularly towards the year-end. Last but not least, SGMF I is a product designed to help develop the SME bond market as a whole, for example by improving the issuers often fragmentary communication with the capital markets. The traditional securities trading and brokerage business continued to face difficulties. Even though the DAX reached a new all-time high of 9,589 on 27 December 2013

4 and put on around 20% during the reporting period, turnover continued to decline both in XETRA trading (-1.31% in the calendar year) as well as on the floor of the Frankfurt exchange (-18.4%). However thanks to our established customer base and our broad expertise, Steubing AG continues to successfully market its services as a system partner to major institutions. This is where Integrated Orderflow Management comes into its own, with the trading vol - umes overseen by us continuing to record stable growth. In collaboration with the Equity Capital Markets department, several smaller capital increases were successfully completed for clients such as ItN Nanovation AG ( 3.8 million, November 2013) and Formycon AG ( 9.4 million, December 2013). With mandates for Formycon AG and Fuchs Petrolub SE, Steubing AG has also moderately extended its activities as Designated Sponsor. In the derivatives trading segment, costs have been substantially reduced for SDB Steubing Derivatives Brokerage GmbH and adjusted in line with the development in sales. Meanwhile in the specialist trading business, Steubing AG supports the quality offensive undertaken by Deutsche Börse AG in order to market the advantages of the Frankfurt exchange more acutely to the general public. In addition to a new market image and a reduction in trading platforms, a quality guarantee for private investors is also an important factor, in that when orders are executed for German and international blue chips as well as Development of various stock indices (Period: 1 July 2013 to 31 December 2013) in % DAX MDAX TecDAX Stoxx 50 CDAX Banks * 1 Source: Deutsche Börse AG and Bloomberg

5 ETFs and ETPs, investors can be confident of receiving transparent prices that are at least as good as in the reference market. The package of measures introduced by Deutsche Börse AG also includes the simplification of trading options and the cessation of XETRA bond trading, in which we have been successfully engaged in cooperation with Walter Ludwig Wertpapierhandels GmbH. This collaboration will now be continued and intensified on the Bondinvest OTC trading platform. Macroeconomic Outlook After the turbulence of 2013, the waves now appear to be somewhat calmer. In the spring of last year the global economy was depressed by the rigid programme of sequestration cuts in the USA and the budget disputes between the Senate and the House of Representatives. This was then followed by a government crisis in Italy, triggered by Silvio Berlusconi, before attention switched to the changes of government in Japan and China, in the latter case prompting concerns about the continuing development in the economy. Germany, too, has seen a change of government, the longerterm consequences for the country s future devel opment are unclear. The Agenda 2010 initiated by former Feder al Chancellor Schröder which was ultimately instrumental in restoring Development of stock exchange volume (Period: 1 January to 31 December) 1 XETRA -Volume in trillion Floor Volume in billion XETRA -Volume Volume on Frankfurt Floor Market 1 Source: Deutsche Börse AG

6 Germany s competitiveness is being partially unwound. In addition election promises are being redeemed in a process which cannot be financed without increases in taxes or social security contributions. Germany is at risk of going into reverse, however much will depend on the precise composition of the grand coalition. On the other hand, the tensions in the eurozone have relaxed slightly. Progress has been made in the countries overseen by the Troika: Following a series of reforms, Ireland has left the confines of the safety net. Spain has also weath - ered the worst and announced that it too will in future be dispensing with the rescue package. Italy is still grappling with political problems, while France has finally emerged as the sick man of Europe. The weak government headed by President Hollande is stubbornly re - sisting to reform. Meanwhile what is needed is less state regulation, a more flexible labour market and future-oriented investment. Of substantially more importance is the development in the USA, where there has been a marked revival in the labour market. The unemployment rate has meanwhile fallen to 7%. The real estate market has also markedly improved with property prices staging a year-on-year rise of 13.6%. Growth in gross national product in the third quarter of 2013 accelerated to an annualized 4.1%. This is a clear signal that this year will see a return to the long-term trend level of growth. The Federal Reserve has responded to the strong economic data by reducing its monthly purchases of fixed-interest securities by US$ 10 billion to US$ 75 billion. Further reduc tions are highly probable, and we anticipate that the purchasing programme will be terminated in the middle of next year. The new government in China has been positioning itself. Premier Li Keqiang and his cabinet are keen to combat corruption and stimulate domestic demand for goods developed and manufactured in China in order to reduce the country s considerable dependence on exports and investment spending. It remains to be seen whether the new government can implement its intentions. So far there are partial but only partial indications of success. Overall, developments at a global level may be regarded as positive for Germany. France remains a major risk that should not be underestimated. However the signs of recovery in the crisis-smitten eurozone states (Portugal, Italy, Ireland, Greece and Spain) give cause for hope, not least

7 because their export ratios meanwhile exceed that of France. The recovery in the United States and the normalization of growth in China are also cause for comfort. It is therefore to be expected that gross national product will increase strongly in the current year. Following on from an estimated 0.5% last year, real growth of a little over 2.0% is expected for This growth will be driven by domestic factors. The high level of employment, for which the small business sector is particularly responsible, will stimulate consumer spending. However demand from abroad will also increase once more, with the result that increased domestic demand will be paralleled by a rise in investment. This in turn will be reflected on the capital markets. The era of ultra-low interest rates will come to an end. We do not anticipate that the central banks will raise their reference rates this year, but we do expect long-term yields on long-dated government bonds to return to more normal levels. This applies in particular to Germany, where yields have prof ited from the possible breakdown of monetary union. Assuming an average inflation rate of 1.8% this year, we expect the yields on 10-year Bunds to rise to at least 3.6%. By the end of the year yields could be even higher, given that according to our calculations, inflation will have reached around 2.7% by December. Normally, higher interests rates have a toxic effect on the stock markets normally. Taking the Federal Reserve model as a basis, German shares might as well be trading at a P/E ratio of 50 without being overvalued. Which sounds just as absurd as the present 2% yield on ten-year Bunds. Assuming a normalized stock market risk premium that takes account of the development in profits, inflation and bond market movements, based on the consensus profit estimates for 2015 a fair value for the German stock market index (DAX) would be 11,400. This goes to show that the climate is becoming harsher: in future the performance of share portfolios will increasingly be dependent on correct sector allocation and the ability to pick the right stock. The Second Half-Year For Steubing AG Having tuned its business strategy to some not inconsiderable extent in recent months, particularly with the expansion of its activities in the Fixed Income segment and the launch of the Steubing German Mittelstand Fund I, in the second half

8 of the financial year Steubing AG will primarily be concerned with consolidating the measures taken so far. The Debt Capital Markets team is already working on additional mandates to structure and place corporate bonds. Dependent on developments in the marketplace, a further transaction may follow as early as the first quarter. The Institutional Customer Support unit will continue to focus on offering attractive roadshows, investor conferences and research products for customers of Steubing AG, putting forward new ideas for portfolio structuring. It is likely, for example, that our company will be involved in holding the DVFA spring conference. In the field of corporate research we are taking another traditional industrial concern under cover - age, namely the railway logistics and rolling stock leasing company VTG AG. Potential developments in the regulatory field remain hugely challenging. Due to our minimal involvement in derivatives, Steubing AG will from a present perspective be affected to no more than a slight extent by the EMIR (European Market Infrastructure Regulation) Directive. However numer - ous other regulatory issues such as MiFID II and the Institutional Remuneration Regulations may, dependent on their ultimate form, put huge pressure on our traditional securities trading business. In the Phoenix affair, Steubing AG contin - ues to await an official demand for the fourth special payment that has meanwhile been announced. Not least in view of these ever-present regulatory risks the total costs of which in each of the past two financial years have amounted to around 1.8 million we are unwilling at this point to make any prediction regarding the possible course of events in the coming six months. The Company Steubing AG is an independent securities trading bank headquartered in Frankfurt am Main, Germany. The company was first founded in 1987 as Wolfgang Steubing GmbH Börsenmakler, a limited liability company, and became a public limited company in January The Company s business activities are founded upon trading and electronic order routing in listed stocks, bonds, certificates and warrants. Additional business areas include serving as a stock and bond specialist on the Frankfurt stock exchange, Integrated Orderflow Management (IOM), Fixed Income, Designated Sponsoring, Institutional Customer Support, Research, Equity/Debt Capital Markets and investment management for the Steubing German Mittelstand Fund I (SGMF).

9 As of 31 December 2013 the group employed a staff of 61. Steubing AG is a member of the Federal Association of Securities Companies on the German Stock Markets (bwf e.v.), the Securities Trading Companies Compensation Fund (EdW), the Frankfurt Institute for Risk Management and Regulation (FIRM), and Frankfurt Main Finance e.v., an initiative de - signed to strengthen Frankfurt as a financial centre. Steubing AG Portfolio of Services Trading and Electronic Order Routing in listed stocks and bonds, certificates and warrants: In this field Steubing AG acts as broker on all of the German stock exchanges, facili - tates the execution of orders in XETRA trading and also has direct online access to around 50 international markets. The Company has many years of experience in trading in international stocks. In the sales volume rankings published by Deutsche Börse AG for the various market segments, Steubing AG is regularly listed as a top performer. Integrated Orderflow Management (IOM): The essential feature of this service is the integrated management on a onestop shop basis of the entire order process up to innovative clearing and settlement solutions. The individual concept of cost-optimised cross-border settlement processes is an important additional competitive factor in this area. Specialist activities: As a specialist Steubing AG enables issuers and investors the opportunity to trade on the Frankfurt Stock Exchange and ensures that some 950 domestic and foreign shares are liquid and constantly marketable on the XETRA -platform. Designated Sponsoring: Since Deutsche Börse AG introduced Designated Sponsoring in October 1998, Steubing AG has managed the securities issued by some attractive companies in XETRA electronic trading. Ever since taking up this activity, Steubing AG as Designated Sponsor has earned an optimum AA ranking in quoting its clients shares. With BB Biotech AG, Colt Resources, Formycon AG and Fuchs Petrolub SE we currently support four companies. Bondinvest: Steubing AG operates the OTC bond trading platform Bondinvest in cooperation with Walter Ludwig Wertpapierhandels GmbH. Over 3,000 bonds issued by companies, banks, national and regional governments are permanently quoted and offered for trading at Institutional Customer Support: Here, Steubing AG is focusing on institutional inves tors, international banks and trading desks. As an established partner in block trades, the

10 company is distinguished by strong placing power and conducts roadshows and investor conferences on a regular basis. Research: Drawing on well nurtured contacts with companies, expert analysts with a minimum of ten years profession al experience provide up-to-the-minute macro economic analyses, as well as company and sector reports from the steel, machinery, industrial and automobile sectors. The daily Morning News and special bond analyses complement our research portfolio. Equity Capital Markets: In this field we provide small and medium-sized enterprises with independent specialist advice and support in preparing and implementing IPOs and capital increases. We also advise already listed companies on their positioning in the capital market. Steubing AG is a Deutsche Börse AG Listing Partner, an M:access issue expert and capital market partner to Börse Düsseldorf. In the new issues business, we cooperate with Commerzbank AG and com direct bank AG. Debt Capital Markets: The Debt Capital Markets team supports SMEs in matters relating to debt capital. We support the entire process of issuing corporate bonds from an initial estimate of market maturity via the coordination of documentation and pre-sounding through to the placement of bonds and commencement of trading. Our team members hold vast expertise in the SME bond segment in particular. In recent years they have supported and placed more than 30 SME bond issues. Steubing German Mittelstand Fund I: Steubing AG is responsible for the investment management on behalf of the Steubing German Mittelstand Fund I. The fund invests in SME bonds issued in the German-speaking region, offering inves - tors the opportunity to benefit from a diversified, liquid investment in the SME bond segment. The launch date of this actively managed UCITS 4 fund was 14 August Luxembourg-based Axxion S.A. acts as fund company. Details of the performance of SGMF I are available on the fund website at

11 Contacts Management Board Alexander Caspary Kai Jordan Executive Manager/ Carsten Bokelmann Revision Money Laundering Officer/ Dietmar Amberg General Management Compliance/ Hanns-Adrian Braun Middle Office IT Bozo Perisa Investor Relations/ Jürgen Mai Public Relations Domestic Trading Foreign Trading Commission Trading Andreas Keune Nikki Keller Klaus-Peter Steinert Integrated Kai Jordan Orderflow Management (IOM) Research Sales-Trading Kai Jordan Wolfgang Schroth Institutional Alexander Deuss Customer Support Raimar Bock Fixed Income Derivatives Sales Kai Basedau Heinz Stork

12 Contacts Foreign Countries Joachim Große Specialist Activities Domestic Market Anthony Disser Specialist Activities Equity Capital Markets Debt Capital Markets Benjamin Schmid Thomas Kaufmann Steubing Ralf Meinerzag German Mittelstand Fund I

13 Wolfgang Steubing AG Wertpapierdienstleister Financial Year 1 July to 30 June Office Goethestrasse Frankfurt am Main Telephone Fax info@steubing.com Auditors Supervisory Board Ernst & Young GmbH Auditing Company Mergenthalerallee Eschborn Wolfgang Steubing (Chairman) Frank Wiebols (Deputy Chairman) Christoph Bokelmann Ernst Neumeier Dietmar Schmid Achim Vandreike der mittelstandsmarkt Ein Segment der Börse Düsseldorf

14 Steubing AG Goethestraße Frankfurt am Main Telefon Fax info@steubing.com