Q Interim presentation. 14 February 2018

Transcription

1 Interim presentation 14 February 2018

2 Highlights Revenues (NOKm) Operating margin % EPS basic (NOK) % 15% 24% 15% 27% 25% 23% 20% 28% Strong quarter of NOK 403m in revenues brings full year revenues of NOK 1,283m vs 1,243 last year (+3%) EPS of NOK 0.52 relative to NOK 0.45 in (NOK 0.18 for ) Proposed dividend of NOK 0.50 per share for to be paid out in May Proposal to pay semi-annual dividends for 2018, starting in second half of

3 01/01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ 01/01/ 01/01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ 01/01/ 01/01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ 01/01/ Low cost of capital and low volatility has been favourable for market pricing and transaction activity Interest rates 5% 4% Equity market volatility Equity indices % % % % % year US interest rate 10 year German interest rate VIX volatility index S&P 500 MSCI Nordic 3

4 Markets division: Solid quarter supported by a strong primary market within debt and equity Revenues (NOKm) Revenues 4 quarter rolling average (NOKm) Total revenues of NOK 183m, down 7% from NOK 197m last year, while full year revenues up 3% to NOK 678m Strong Prospera rankings within Equity Sales and Research 4

5 Markets division: Fixed income operation continuing to improve diversification within Markets Revenues (NOKm) Equities Non-Equities (Fixed Income, CB, FX) Revenues from Equities were down 13% y-o-y, with secondary brokerage and research revenues being under some pressure prior to the implementation of MiFID II Non-Equities revenues of NOK 43m, up 19% y-o-y, positively impacted by several primary DCM transactions 5

6 Investment Banking division: revenues in line with last year Revenues (NOKm) Revenues 4 quarter rolling average (NOKm) Revenues positively impacted by active ECM market, as well as all time high DCM market in ABGSC voted top 3 Investment Bank overall in the Prospera ranking for Corporate Finance advisors in the Nordics, including #1 overall in Norway, Also winner of two categories in Mergermarket awards, «M&A Financial Advisor of the Year in Norway» and as advisor to «European Deal of the Year» 6

7 Selected Investment Banking transactions Selected transactions Pandox Komplett bank Mølleparken Kistefos TCM Group Lyko SEK 1,480m Private placement NOK 1,031m Initial public offering SEK 240m Senior secured bond NOK 600m Senior unsecured bond DKK 789m Initial public offering SEK 284m Initial public offering Joint bookrunner Joint global coordinator and joint bookrunner Sole manager Joint manager and bookrunner Joint bookrunner Sole global coordinator and bookrunner SKAGEN Fondene Compactor Fastigheter Sonans Gruppen M2 asset management Tulip Oil Salling Bank NOK 1,600m Acquisition by Storebrand SEK 500m Senior unsecured bond issue Undisclosed Sale to EMK Capital SEK 300m Senior unsecured tap issue EUR 87m Senior secured bond issue DKK 138m Rights Issue Advisor to Storebrand Sole manager and bookrunner Advisor to Procuritas Joint bookrunner Sole manager and bookrunner Sole lead manager and financial advisor Borr Drilling Mijodan Ryds bilglas Glamox Insr Insurance Group Nemi Forsikring USD 650m Private placement Joint bookrunner Undisclosed Acquisition by Reconor Advisor to Reconor Undisclosed Sale to Nordic Capital Advisor to Nalka Invest NOK 3,850m Sale to Triton Advisor to Arendals Fossekompani NOK 400m Private placement Sole manager and bookrunner NOK 320m Acquisition of Nemi Forsikring Advisor to Insr Insurance Group

8 Full year operating costs of NOK 972m in line with last year (NOK 976m) Personnel costs (NOKm) Non-personnel costs (NOKm) Total personnel costs / Revenues % 58% 58% 61% 58% 56% 54% 58% 54% Total personnel costs for the year is down 2% with an increased tilt towards variable compensation Full year Non-personnel costs up 3% compared to last year 8

9 Closing remarks High level of capital market activity with several transactions closing towards the end of the year MiFID II regulations is expected to have a significant impact on the market for research and brokerage services. ABGSC will not weaken its leading product offering and seek to offset any lost revenues within this area by growing our market share and further developing our primary capital market business Swedish operation continuing growth to new all-time high revenues in Investments in fixed income / DCM operation has paid off with increased market share in Norway (34 high yield transactions / 1 convertible bond transaction completed in the Nordics during the year) Ambition to further grow our client base while maintaining our traditional tight cost control Mandated transaction pipeline throughout the firm on a 10-year high, however recent market development may impact execution Improved cash distribution to shareholders through proposed semi-annual dividends starting in 2H

10 Appendix: Key figures Y-o-Y YTD YTD Y-o-Y Revenues NOKm % 1,283 1,243 3% Personnel costs NOKm % % Non-personnel costs NOKm % % Total operating costs NOKm % % Operating profit NOKm % % Net financials NOKm % % Profit before tax NOKm % % Taxes NOKm % % Non-controlling interests NOKm -5 0 NA -6 0 NA Net profit NOKm % % EPS (basic) NOK % % EPS (diluted) NOK % % Book value per share NOK % % Headcount (average) # % % Revenues per head (average) NOKm % % Operating costs per head (average) NOKm % % Operating cost / Revenues % 72.2% 73.2% 75.8% 78.5% Total compensation / Revenues % 54.4% 57.6% 55.4% 58.3% Operating margin % % 27.8% 26.8% 24.2% 21.5% Return on Equity (annualised) % 42.0% 45.2% 29.3% 28.3% 10

11 Appendix: Consolidated income statement (unaudited) NOKm YTD YTD 2015 Brokerage revenues Corporate Finance revenues Total revenues , , ,313.9 Fixed personnel costs Other operating costs Depreciation Total operating costs Operating profit before variable compensation Variable personnel costs Operating profit after variable compensation Net financial result Profit before tax Taxes Net profit Profit / loss to non-controlling interests Profit / loss to owners of the parent

12 Appendix: Consolidated balance sheet (unaudited) NOKm 31/12/ 31/12/ 31/12/2015 Total intangible assets Plant and equipment Financial non-current assets Total non-current assets Receivables , ,166.5 Investments Cash and bank deposits Total current assets 1, , ,311.5 Total assets 2, , ,410.8 Paid-in capital Retained earnings Equity attributable to owners of the parent Non controlling interests Total equity Long-term liabilities Short-term liabilities 1, , ,395.5 Total liabilities 1, , ,413.1 Total equity and liabilities 2, , ,

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