2005 Results. Zurich - 13 March 2006

Transcription

1 2005 Results Zurich - 13 March 2006

2 2005: Capital transformations driving strategic developments in the sector Exchanges Globally: volumes up strongly United States: electronic strategy and stock market listing, two major themes Europe: expected consolidation carried over to 2006 Convergence: Euronext buys MTS Size of 4 benchmark listed exchanges Interdealer brokers & futures brokers The US market turned leader Strategic interest from private equity firms Accelerated consolidation in the futures sector Weight of 4 top listed interdealer brokers mds chf mds chf Market Cap Dec 04 Market Cap Dec 05 Turn DB Eur one xt CME L S E 0 Market Cap Dec 04 Market Cap Dec 05 Turn Icap CSTL CFT GFI (*) (*) Listed since January 2005

3 Tradition, one of the top three 2,037.8 mchf* 1,607.6 mchf* mchf mchf* 1. ICAP 2. Tullet Prebon 3. Tradition 4. GFI * Latest full year estimates

4 Tradition, a global coverage West of Europe (London, Brussels, Frankfurt, Luxembourg, Paris, Munich, Lausanne, Milan, Copenhagen) Moscow Houston Stamford New York Beijing Tokyo Mexico Hong Kong Singapore Santiago Sao Paulo Buenos Aires Johannesburg Sydney A presence in 20 countries, with 26 offices and almost 2,150 employees

5 Tradition, growing organically Current exchange rates Constant exchange rates* * At In millions of CHF Excl. EBFL in revenues CAGR of 14.7% in current terms and 16.1% in 2005 constant currency terms Revenue drivers include: Market Growth Hiring of new teams Small scale acquisitions

6 Tradition, a one stop shop service Exchange memberships : Money market and interest rate and currency derivatives z Money market z Interest rate derivatives z Currency options Securities and futures AMEX, Bondex, CME, EEX, EUREX, Euronext Liffe, LSE, NYSE, OFEX, Safex, SGX, Xetra Tradition is particularly strong in the following market segments: z Equity and equity derivatives - Interest rate derivatives z Exchange-traded derivatives z Government and corporate bonds - FX derivatives z Repos z Credit derivatives Commodities - Energy / environmental / precious metal derivatives - European and US equity derivatives z Precious metal - US money market z Energy (natural gas, electricity, oil, coal, weather derivatives, emissions) - European government bonds z Other (pulp and paper, freight, property derivatives) - Emerging market bonds

7 Tradition, innovation thanks to technology

8 Tradition, innovation thanks to technology 300 m chf Q Q Q Q Revenues of about 55 mchf coming from retail electronic exchange in 2005 North of mchf for 100% shareholding Core Business Retail electronic exchanges Other In the books for 11.2 mchf

9 2005 Turnover

10 Turnover by product (In millions CHF) 600, ,0 444,6 486,5 400,0 300,0 310,7 309,0 200,0 100,0 69,3 87,9 25,2 59,0 0,0 MM & interest rate derivatives Securities & Derivatives Commodities Other activities

11 Product trends 2005 Currencies and interest rates 51.6% 2005: MCHF : MCHF / 2004: + 9.2% (+ 9.3% at constant exchange rates) Securities and derivatives 32.8% 2005: MCHF : MCHF / 2004: -0.1% (-0.1% at constant exchange rates) Commodities and other activities 15.6% 2005: MCHF : MCHF / 2004: % (+ 55.9% at constant exchange rates)

12 Turnover by geographical area 40,0% ,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% Continental Europe United Kingdom United States Asia - Pacific

13 Regional trends 2005 Continental Europe 12.7% 2005: MCHF : MCHF / 2004: -21.8% (-21.9% at constant exchange rates) United Kingdom 35.9% 2005: MCHF : MCHF / 2004: +26.9% (+27.5% at constant exchange rates) United States 28.9% 2005: MCHF : MCHF / 2004: + 3.9% (+ 3.5% at constant exchange rates) Asia - Pacific 22.5% 2005: MCHF : MCHF / 2004: % (+ 26.2% at constant exchange rates)

14 Revenue Split by Geography / Product (CHF in millions) Europe CAGR % Currencies and Interest Rates Securities and Futures Commodities and Other Activities Total U.S % Currencies and Interest Rates Securities and Futures Commodities and Other Activities Total Asia - Pacific % (1) No segmentation Note: 2001 numbers exclude EBFL CAGR are in current terms Currencies and Interest Rates Securities and Futures Commodities and Other Activities Total

15 2005 Operating margin

16 Operating profit: CHF 61.7m 6.5% at million of CHF ,6* IFRS IFRS *Excluding gross profit on disposal of buildings, operating profit amounted to CHF 52,6 million.

17 Analysis of operating margin As % of consolidated turnover Personnel costs - operational Personnel costs - administrative Telecoms & Data Business development Premises Amortisation Other net expenses IFRS* Swiss Gaap* Operating margin * Excluding gains on disposal of buildings

18 Loss making operations (non core) in mchf 1 0,5 0-0,5-1 -1,5-2 -2,5 in mchf H H H H SP Angel FXDD Other Total No new non core LMO in 2005 Turnaround of FXDD in the second half with strong prospects for 2006 SPAngel closely monitored

19 Loss making operations (core) in mchf H H H H Continental Europe Asia Pacific 2005 focused on the handling of Continental Europe and its satellites In Asia, establishment of a few new products in the core business in 2004 and in 2005

20 2005 Net profit

21 Net profit - Group share: CHF 28.5m 60 50,5 53, , ,0* 23,4* SWISS GAAP 2004 IFRS 2005 * Excluding gains on disposal of buildings, Group share of net profit under Swiss GAAP and IFRS was CHF 25,0 million and CHF 23,4 million respectively.

22 Net profit - Group share: CHF 28.5m In millions of Swiss francs IFRS IFRS* Swiss Gaap* Operating profit Financial income Associated undertakings Profit before tax Tax Goodwill amortisation Consolidated net profit Net profit - Group share * Excluding gains on disposal of buildings

23 Net profit - Group share: CHF 28.5m In millions of Swiss francs IFRS IFRS* Swiss Gaap* Operating profit ,3 Financial income Associated undertakings Profit before tax 71, ,7 Tax -30, ,2 Goodwill amortisation Consolidated net profit ,5 Net profit - Group share ,0 * Excluding gains on disposal of buildings

24 Net profit - Group share: CHF 28.5m In millions of Swiss francs IFRS IFRS* Swiss Gaap* Operating profit Financial income Associated undertakings Profit before tax Tax Goodwill amortisation Consolidated net profit Net profit - Group share * Excluding gains on disposal of buildings

25 Balance sheet at 31 December 2005

26 Consolidated balance sheet at 31 December 2005 ASSETS LIABILITIES CHF millions CHF millions Cash + marketable securities Financial debts Trade and other receivables Other short term debts and accruals Other receivables and accruals Provisions Current assets 1, Total creditors Financial fixed assets Shareholders equity - Group Tangible fixed assets Minority interests Intangible fixed assets Shareholders' equity Deferred tax Non current assets Non current assets for sale held TOTAL ASSETS TOTAL LIABILITIES

27 Minority interests CHF m Net consolidated results Minority interests % % 2004 IFRS 27.9* % * Excluding gains on disposal of buildings

28 Impact of conversion to IFRS

29 Key points in the transition to IFRS for 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 3.8 million or -1.9% at compared to Swiss GAAP reporting) Stability in Group share of net profit (+CHF 3.2 million or +6.3% at ) The main change for the balance sheet appears in the gross reporting of failed principal operations (impact: CHF million at ) The other important changes affect the account structure and notes to the consolidated financial statements.

30 Key figures: balance sheet En CHF million, Balance sheet total +46.3% Shareholders equity - Group share -1.9% Swiss GAAP IFRS Swiss GAAP IFRS

31 Key figures: profit & loss En CHF million, Net profit - Group share Operating profit +6.3% -3.1% 84.8* Swiss GAAP IFRS Swiss GAAP IFRS * Exceptional impact of reclassification and restatement of income on the disposal of buildings

32 Stock market data

33 Stock market data Compagnie Financière Tradition shares Stock No. : 1,248,815 Listing : SWX Zurich No. of shares : 5,468,357 Nominal value : CHF 2.50 Capital : CHF 13.7 million Free float : 30.30% P/E 2005 : Dividend 2005 : CHF 6.0 Yield 2005 : 4.45%* Based on a rate of CHF 134.8

34 Stock market data Annualised increase in share price: 35.8% since September % 140% 130% 120% 110% 100% 90% 80% CFT SMI 12/04 03/05 06/05 09/05 12/05 03/06 Since * Since * Annualised increase 96-06* CFT + 0.5% % % SMI + 4.4% % + 7.2% * At 3 March, based on a CFT share price of CHF and SMI of 7,916.0

35 Stock market data CFT offers the best direct yield on the SWX Dividend per share* in CHF 7,0 6,0 5,0 4, ** 3,0 2,0 1, , * Based on a share of CHF 2.50 nominal value ** Will be recommended to the General Meeting of Shareholders on 17 May 2006

36 Tradition s Strategic Objectives (1980) Onwards Build Size & Scale Establish Global Coverage Deliver Profitable Growth Continue to build Size & Scale Implement Cost Reduction Programs regularly Enhance Global Coverage Avoid Goodwill Improve Balance Sheet Emphasize Return on Equity Focus on High Technology Culture

37 2005 Results Zurich - 13 March 2006