First-Half results September

Transcription

1 FirstHalf results September 2004

2 Introduction Our business Firsthalf turnover 2004 Firsthalf operating results 2004 Firsthalf net profit 2004 Balance sheet at Share performance Outlook

3 Compagnie Financière Tradition World s No. 3 interdealer broker, 1,800 employees, including 1,350 brokers, A presence in sixteen countries; over 70% of revenues generated through the three major financial centres London, New York and Tokyo, Corporate ethos built on development and innovation, with highly specialised expertise in an extensive range of market segments.

4 Key figures (CHF million) Annual Halfyear Turnover: CHF million Annual Halfyear Annual Halfyear Operating profit: CHF 44.3 million Net profit Group share CHF 42.1 million

5 Key figures With solid fundamentals a sharp rise in turnover, improved operating margin and Group share of net profit ahead Compagnie Financière Tradition consolidated its position as the world s No. 3 broker.

6 Introduction Our business Firsthalf turnover 2004 Firsthalf operating results 2004 Firsthalf net profit 2004 Balance sheet at Share performance Outlook

7 Compagnie Financière Tradition providing liquidity in financial markets Stock exchanges Euronext (666)* Deutsche Börse (954)* LSE (237)* OM Gruppen (122)* Information providers Bloomberg Reuters Money Brokers ICAP (801)* Tullett (427)* CFT (357) Financial Markets Banks & Financial Institutions Market makers Own account traders Arbitragers Teasurers Financial futures markets Eurex Liffe ATS Instinet (603)* ESpeed (87)* * Based on latest published turnover in m

8 In its role as a marketplace, Compagnie Financière Tradition offers a neutral and independent service by organising liquidity (financial instruments and transactions) for its clients. Stock exchanges Euronext (666)* Deutsche Börse (954) * LSE (237)* OM Gruppen (122)* Money Brokers CFT Financial futures markets Eurex Liffe Information providers Bloomberg Reuters Banks & Financial Institutions Market makers Own account traders Arbitragers Teasurers ATS Instinet (603) ESpeed (87)

9 Stock exchanges Euronext (666)* Deutsche Börse (954) * LSE (237)* OM Gruppen (122)* Money Brokers CFT Financial futures markets Eurex Liffe Information providers Bloomberg Reuters Banks & Financial Institutions Market makers Own account traders Arbitragers Teasurers ATS Instinet (603) ESpeed (87) Experience, a broad client network, and an expert understanding of their objectives are key factors underlying Compagnie Financière Tradition s success.

10 Compagnie Financière Tradition a tradition of development and innovation CFT established Listed on the stock exchange CFT launched the Forward Rate Agreement CFT initiated the first transactions on the OTC market for oil derivatives in London First broker to open a representation office in China Invested in innovative technology companies CFT introduced the best hybrid voice/electronic broking model currency options market

11 Compagnie Financière Tradition a tradition of development and innovation Platform for financial products

12 Tradindex.com

13 Economic environment H Volatility trends since January /03 02/03 03/03 04/03 05/03 07/03 08/03 09/03 10/03 11/03 01/04 02/04 03/04 04/04 06/04 07/04 10 Lehman Brothers Sw aption volatility index, l. scale VDAX volatility index, r. scale Volatility indexes in the equity and interest rate markets in %

14 Introduction Our business Firsthalf turnover 2004 Firsthalf operating results 2004 Firsthalf net profit 2004 Balance sheet at Share performance Outlook

15 Turnover of CHF million Annual Halfyear A rise of 14.1% at current exchange rates (13.7% at constant exchange rates)

16 Turnover A diversified portfolio of products Money market and interest rate and currency derivatives Securities and futures Equity and equity derivatives Exchangetraded, interest rate and equity derivatives Government and corporate bonds Repos Credit derivatives Commodities Precious metal Energy (natural gas, electricity, oil, coal, weather derivatives) Other Money market Interest rate derivatives Currency options Noncore businesses Internet activities for retail clients Money market and interest rate and currency derivatives Securities and futures Commodities Other 1.2% 1.7% Money market and interest rate and currency derivatives Analysis of turnover by product H % 7.8% 8.3% Other 1.2% 38.4% 40.3% Commodities 7.8% 49.7% Securities and futures 38.4% 52.6% H H % 10% 20% 30% 40% 50% 60%

17 Turnover Product trends Money market and interest rate and currency derivatives 52.6% Securities and futures 38.4% H1 2004: CHF 232.5m H1 2003: CHF 192.6m H / H1 2003: % (+ 20.1% at constant exchange rates) H1 2004: CHF 169.7m H1 2003: CHF 156.2m H / H1 2003: + 8.6% (+ 8.2% at constant exchange rates) Commodities and other activities 9.0% H1 2004: CHF 40.2m H1 2003: CHF 38.9m H / H1 2003: + 3.4% (+ 3.8% at constant exchange rates)

18 Turnover Product trends Money market and interest rate and currency derivatives 52.6% H1 2004: CHF 232.5m H1 2003: CHF 192.6m H / H1 2003: % (+ 20.1% at constant exchange rates) Strong growth stimulus in interest rate H1 derivatives 2004: CHF business 169.7m (+21.8% Securities at constant and futures exchange rates), thanks to recruitment of new teams in H1 2003: CHF 156.2m Asia Pacific 38.4% region and steady growth generated from New York and H / H1 2003: +8.6% London. (+8.2% at constant exchange rates) Robust currency options business at TFSICAP+Volbroker joint venture. Growth in London and New York activities. H1 2004: CHF 40.2m Commodities and H1 2003: CHF 38.9m other activities H / H1 2003: + 3.4% 9.0% (+ 3.8% at constant exchange rates)

19 Turnover Product trends Money market and interest rate and currency derivatives 52.6% H1 2004: CHF 232.5m H1 2003: CHF 192.6m H / H1 2003: % (+20.1% at constant exchange rates) Securities and futures 38.4% H1 2004: CHF 169.7m H1 2003: CHF 156.2m H / H1 2003: + 8.6% (+ 8.2% at constant exchange rates) H1 2004: CHF 40.2m Futures Commodities and bond activities and remained stable. H1 2003: CHF 38.9m Equities other and activities equity derivatives business on the rise. H / H1 2003: + 3.4% 9.0% (+ 3.8% at constant exchange rates)

20 Turnover Product trends Money market and interest rate and currency derivatives 52.6% H1 2004: CHF 232.5m H1 2003: CHF 192.6m H / H1 2003: % (+ 20.1% at constant exchange rates) Energy products grew 9.8% : increase H1 of 2004: electricity CHF and 169.7m natural gas Securities turnover and and decrease futures of oil turnover. H1 2003: CHF 156.2m Stable turnover 38.4% on precious metals. H / H1 2003: +8.6% Growth of activities involving new (+8.2% technologies. at constant exchange rates) Commodities and other activities 9.0% H1 2004: CHF 40.2m H1 2003: CHF 38.9m H / H1 2003: + 3.4% (+ 3.8% at constant exchange rates)

21 Turnover A balanced geographic spread STAMFORD NEW YORK JOHANNESBOURG BUENOS AIRES BEIJING HONG KONG SINGAPORE TOKYO SYDNEY LONDON BRUSSELS FRANKFURT LUXEMBOURG PARIS MUNICH LAUSANNE MILAN LISBONNE The sharp rise in firsthalf turnover reflects the Group s balanced growth in both products and geographic spread. Asia Pacific 18.1% 17.8% H Continental Europe H % 19.3% United Kingdom 31.7% 32.9% United States 30.6% 30.0% 0% 5% 10% 15% 20% 25% 30% 35%

22 Introduction Our business Firsthalf turnover 2004 Firsthalf operating results 2004 Firsthalf net profit 2004 Balance sheet at Share performance Outlook

23 Operating profit Annual Halfyear Operating profit up 16.9% at CHF 44.3 million

24 Operating profit CHF million H H % change Net turnover Other operating income Operating income Operating expenses Operating profit Operating margin 10.0% 9.8% n/a

25 Operating profit CHF million H H % change Net turnover Other operating income Operating income Operating expenses Operating profit Operating margin 10.0% 9.8% n/a

26 Operating profit CHF million Net turnover H H % change 14.1 Other operating income Operating income Operating expenses Operating profit Operating margin 10.0% 9.8% n/a Operating margin reached 10% of consolidated turnover.

27 Introduction Our business Firsthalf turnover 2004 Firsthalf operating results 2004 Firsthalf net profit 2004 Balance sheet at Share performance Outlook

28 Net profit Group share Annual Halfyear Net profit Group share up by CHF 42.1 million

29 Net profit Group share CHF million H H % Operating profit Financial income Profit before tax Exceptional items 21.0 Tax Associated undertakings Goodwill amortisation Consolidated net profit Net profit Group share

30 Net profit Group share Financial income CHF million H H % Operating profit Financial income Profit before tax Exceptional items 21.0 Tax Associated undertakings Goodwill amortisation Consolidated net profit Net profit Group share

31 Net profit Group share Financial income CHF million H H % Operating profit Financial income Résultat courant avant impôt CHF thousand Résultat Income exceptionnel from investments Impôt Net capital sur les gains résultats on investments and marketable securities Résultat des sociétés mises en équivalence Interest and exchange gains and losses Amortissement des écarts d acquisition Provision on investments Résultat net consolidé TOTAL Net profit Group share , , , , ,

32 Net profit Group share Exceptional items CHF million H H % Operating profit Financial income Profit before tax Exceptional items 21.0 Tax Associated undertakings Goodwill amortisation Consolidated net profit Net profit Group share

33 Net profit Group share Exceptional items CHF million H H % Operating profit Financial income Profit before tax Exceptional items 21.0 Tax Associated Gross profit undertakings of CHF 27.5 million on the sale of its Lausanne 0.3 buildings to Financière Vermeer BV, in June 2004, for a price of CHF 35.0 million, Goodwill amortisation against a net book value of CHF 7.5 million. Consolidated net profit After taking account of a tax charge of CHF 6.5 million, Net profit Group share CFT earned a net profit on the sale of CHF 21.0 million

34 Net profit Group share Tax expense CHF million H H % Operating profit Financial income Profit before tax Exceptional items 21.0 Tax Associated undertakings Goodwill amortisation Consolidated net profit Net profit Group share

35 Net profit Group share Tax expense CHF million H H % Operating profit Financial income Profit before tax Exceptional items 21.0 Tax Résultat Profit before des tax sociétés mises en équivalence Amortissement Tax des écarts d acquisition , ,0 23.0* , , , Effective tax rate (excl. buildings) 39.0% 36.9% 36.9% Résultat net consolidé 46,0 26,7 72,3 Average standard tax rate 36.8% 33.6% Résultat net part du groupe 42,1 21,9 92,9 The firsthalf consolidated tax charge was CHF 22,960,000, including a tax charge of CHF 6,463,000 on profit on the disposal of Lausanne buildings offset against exceptional profit. The effective tax rate, including tax on this profit, was 33% (average standard tax rate: 31,6%).

36 Net profit Group share CHF million H H % Operating profit Financial income Profit before tax Exceptional items 21.0 Tax Associated undertakings Goodwill amortisation Consolidated net profit Net profit Group share

37 Introduction Our business Firsthalf turnover 2004 Firsthalf operating results 2004 Firsthalf net profit 2004 Balance sheet at Share performance Outlook

38 Consolidated balance sheet ASSETS LIABILITIES CHF million CHF million Cash and mark. securities Financial debts Trade debtors Other receivables and accruals Other short term debts and accrual Cont. & loss provisions Current assets Total creditors Financial fixed assets Shareholders equity Gs Tangible fixed assets Intangible fixed assets Minority interests Fixed assets Shareholders equity TOTAL ASSETS TOTAL LIABILITIES

39 Consolidated shareholders equity Consolidated shareholders equity of CHF million Minority interests Group share H Shareholders equity/ total assets: 41.8% Net cash position at : CHF million

40 Introduction Our business Firsthalf turnover 2004 Firsthalf operating results 2004 Firsthalf net profit 2004 Balance sheet at Share performance Outlook

41 Share performance Compagnie Financière Tradition share Stock N : 1,248,815 Listing : SWX Zurich Number of shares : 5,401,369 Nominal value : CHF 2.50 Share capital : CHF 13.6 million Outstanding : 27.49% P/E 2003 : 15.2x 2003 Dividend : CHF 5.0 Yield 2003 : 4.7%* * At 7 September 2004

42 Share performance A annualised growth of stock price of 42.8%* since % 125,0 115,0 120% 105,0 95,0 100% 85,0 80% 75,0 65,0 60% 55,0 40% SMI CFT 12/01 04/02 06/02 09/02 12/02 03/03 06/03 09/03 12/03 03/04 06/04 08/04 45,0 35,0 Since * Since Annualised growth 9604* CFT % + 1,626.2% % SMI 14.3% * % + 4.3% * At 8 September 2004, based on a CFT share price of and an index level of 5,502.5

43 High dividend policy Dividend per share* (CHF) Yield 2003: 4.7% * Based on a share of CHF 2.50 nominal value

44 Introduction Our business Firsthalf turnover 2004 Firsthalf operating results 2004 Firsthalf net profit 2004 Balance sheet at Share performance Outlook

45 Outlook Maintain organic growth of 5% over the mediumterm, Improve operating margin with target of 15% in the mediumterm: Increase flexibility of broker remuneration structure, General reduction in brokers payout ratios in an industry marked by mediumterm consolidation, Continue to cut costs of data and telecoms. But at the same time pursue a highly aggressive policy for team recruitment in light of current merger operations, Enhance development of Compagnie Financière Tradition s new innovative technology businesses, particularly on the Internet.

46 FirstHalf results September 2004