Singapore Exchange Limited Third Quarter FY 2010 Interim Results. Magnus Bocker, CEO Seck Wai Kwong, CFO

Transcription

1 Singapore Exchange Limited Third Quarter FY 2010 Interim Results Magnus Bocker, CEO Seck Wai Kwong, CFO 16 April 2010

2 Agenda 1. Highlights 2. Financial Performance 3. Business Update 4. Conclusion 2

3 Highlights: Third Quarter FY 2010 Increased securities market activity and flat derivatives revenue Progress on product development & product launches New international members Profit: Up 35% to $75M FY09 Net Profit Revenues Expenses Others & Tax Net Profit Net profit margin 46% 4% Return on equity % 10% (Note: Some numbers may be subject to rounding) 3

4 Financial Performance Income Statement A good third quarter on securities market rebound Higher cost base due to ongoing technology investment FY09 Change YTD YTD FY09 Change Revenues % % Expenses % % Net profit % % (Note: YTD includes $6.3M non-recurring CEO transition costs) 4

5 Financial Performance Revenue: New Classification Securities Trading and clearing of securities: shares; REITs; ETFs; and bonds Derivatives Market Data Trading, clearing & settlement of futures & options, structured warrants and OTC-traded contracts Sales & distribution of securities, derivatives and commodities market information Member Services and Connectivity Membership, connectivity & network services to facilitate members trading and clearing in SGX markets Depository Services Settlement and depository services Issuer Services Listing of securities and corporate action services (Please refer to the SGXNet for a re-stated classification of our historic revenues) 5

6 Financial Performance Revenues FY09 Change YTD YTD FY09 Change Securities % % Derivatives % % Market Data 9-5% % Member Services & Connectivity 7 +12% % Depository Services % % Issuer Services % % Others % % Total % % 6

7 Financial Performance Securities and Derivatives Securities recovery, SDAV up 66% to $1.5B from $914M Derivatives resume growth trend, DDAV up 15% to 234k from 204k contracts Securities and Futures & Options Daily Average 3, Securities Daily Average Value ($M) 2,500 2,000 1,500 1, Futures & Options Daily Average Volume ('000 contracts) 0 1Q FY06 1Q FY07 1Q FY0 1Q FY09 1Q 0 (1) ROE is based on 6 monthssecurities Daily Average Value ($M, LHS) (2) TSR is based on 3 and 9 months, extracted from Bloomberg Futures & Options Daily Average Volume ('000 contracts, RHS) 7

8 Financial Performance Expenses Expenses 5 2 Ongoing technology investment 2 Increased market activities 17% Variable bonus provision FY09 Staff System Maintenance & Rental and Depreciation & Amortisation Processing & Royalties Others

9 Financial Performance Performance at a Glance FY09 YTD YTD FY09 Net profit margin (%) Cost-to-income (%) Net Equity ($M) Return on Equity (%) Earnings per Share (cents) Dividend per Share (cents) (1) No. of shares issued, excluding treasury shares: 1, March 2009 and 2010 (2) ROE is based on 3 and 9 months 9

10 SGX: Asian Gateway Well diversified business Growth potential 53% revenue from outside Singapore Derivatives 21% (26%) Market Data 5% (7%) Member Services & Connectivity 5% (6%) SGX 53% (45%) Securities 46% (36%) Issuer Services 10% (11%) SGX Business Lines Depository Services 13% (14%) Asian Gateway Revenue ( FY09 comparative figures) 10

11 Securities: Trading and Clearing Revenue Contribution: $70M (46%) Market structure Product development Key drivers Daily Average Trading Value ($) Daily Average Trading Volume (shares) Metrics 2Q FY09 1.5B 1.4B 0.9B 1.6B 1.4B 1.1B Turnover Velocity (%) Contract values More than $1.5M (%) Less than $1.5M (%) Securities Daily Average Trading Growth (%) Securities Revenue ($M) SGX HKEx TSE US -9 Equities -21 Year-on-year ( / FY09) (Source: ERDesk) TMX DB LSE & Borsa -16 Italiana 6-4 BM&F Quarter-on-quarter ( / 2Q ) FY09 4Q FY09 1Q 2Q Access Clearing Related Processing 11

12 Derivatives: Trading & Clearing Revenue contribution: $32M (21%) Market structure High frequency trading (HFT) Product development 22 Feb: Fuel oil 30 Mar: SICOM gold Pipeline: 22 Apr: Robusta coffee Nifty derivatives, STOXX AsiaClear Key drivers Daily Average Volume ( 000 contracts) Metrics 2Q FY Nikkei 225 futures MSCI Taiwan futures Nifty futures MSCI SG futures Interest rate futures Fuel Oil futures 24 NA NA SICOM futures (contracts) 1,2 1,106 1,276 Extended settlement (shares) 0,705 66, ,93 Structured warrants ($M) HFT participation (%) AsiaClear (lots) cleared 35,72 37,347 20,312 Futures & Options Daily Average Trading Growth (%) Derivatives Revenue ($M) NA SGX HKEx KRX CME ICE DB BM&F Year-on-year ( / FY09) Quarter-on-quarter ( / 2Q ) (Source: ERDesk) 0 FY09 4Q FY09 1Q 2Q 12

13 Market Data: Information sales & distribution Revenue Contribution: $M (5%) Market structure Securities information Derivatives information Commodities information Distribution channels Key drivers Securities Data Mar 10 Metrics Jun 09 Jun 0 No. of vendors No. of end users 43,070 36,509 3,043 Derivatives Data No. of vendors No. of end users 25,469 26,70 33,419 Revenue Contribution (%) Market Data Revenue ($M) SGX ASX Bursa HKEx TSE CME ICE NDAQ NYX DB LSE (Source: Companies latest quarterly / half yearly reports) 0 FY09 4Q FY09 1Q 2Q 13

14 Member Services and Connectivity Revenue contribution: $M (5%) Membership New Members Approved In-Principle Members Technology and connectivity Key drivers Membership Securities members Metrics 2Q FY09 Clearing Members Trading Members Trading Representatives Derivatives members Clearing Members Trading Members Trading Member (Proprietary) Trading Member (Individual) SICOM members Clearing Members: Brokers / Dealers Trade / Associate Members Member Services and Connectivity Revenue ($M) FY09 4Q FY09 1Q 2Q Terminal and connection Membership 2 Connectivity Securities Market ST connectivity (no.) 97 4 ST Order Management System (no.) Derivatives Market DT connectivity (no.) DT Order Management System (no.) Proximity Hosting

15 Depository Services: Settlement & Depository Revenue Contribution: $19M (13%) Settlement services Depository services Other post-trade related services 25 Depository Services Revenue ($M) Assets under custody FY09 4Q FY09 1Q 2Q 15

16 Issuer Services: Listing and related services Revenue Contribution: $15M (10%) IPO activities Sectoral strengths REITs: 2 nd in Asia Maritime & Offshore Hub Metrics Key drivers 2Q FY09 Primary No. of new listings Funds raised ($M) 522 3, Secondary Funds raised ($M) 532 5,071 6,595 Total Funds Raised ($M) 1,054,075 6,614 Market Capitalisation ($B) No. of issuers Equity securities Debt securities ETFs Company warrants Issuer Services Revenue ($M) Issuer-related services Corporate actions FY09 4Q FY09 1Q 2Q Listing Other issuer related 16

17 Conclusion Solid quarter built on stable business and sound financials International & local membership Product development Technology roadmap Market Outlook 17

18 Q & A Please state your name and the company you represent While care has been taken to ensure the accuracy of the information in this document, SGX and its affiliates make no warranty as to the accuracy, completeness, merchantability or fitness for any purpose, of the information contained in this document or as to the results obtained by any person from the use of any information or investment product mentioned in this document. SGX reserves the right to make changes to such information from time to time. Any change, omission or error in such information, shall not form the basis for any claim, demand or cause of action against SGX or any of its affiliates and SGX and its affiliates expressly disclaim liability for the same. 1