Kurzbericht zum 30. Juni Abridged Report as at 30 June

Transcription

1 Kurzbericht zum 30. Juni 2014 Abridged Report as at 30 June

2 The Financial Year 2013/2014 Steubing AG ended the financial year with a provisional, as yet unaudited annual surplus of around 597,000. The result reflects the continuing difficult conditions surrounding the traditional securities trading and brokerage business, as well as the increased costs of trading systems, administration and regulation. It also takes into account the allocation re quired by law to a separate item heading for the General Bank ing Risk Fund with an amount of 839,000. Steubing AG will publish the final audited figures together with its annual report at the end of November 2014 and present the results together with an appropriate dividend proposal at the annual general meeting in December 2014 in Frankfurt am Main. Financial Year 2013/2014 (in k) 2011/ / /14 Gross earnings before trading costs 17,292 19,913 19,944 Gross earnings after trading costs 14,359 17,410 17,483 Earnings before taxes and allocation to the General Banking Risk Fund ,872 2,456 Earnings before taxes -1,157 1,837 1,617 Provisional annual surplus -1, ,000 in k 15,000 10,000 5, ,000 Gross earnings before trading costs Gross earnings after trading costs Earnings before taxes and allocation to the General Banking Risk Fund Earnings before taxes Provisional annual surplus 2011/ / /2014

3 Overview of the business areas of Steubing AG The past financial year provided renewed evidence of the conflicting trends in indices vs. volumes. Whereas Germany s leading index, the DAX, passed the magic 10,000 mark on 9 June 2014, and indeed all indices recorded sub - s tantial growth (e.g. MDAX up 22.68%, TecDAX up 38.14%), trading volumes lingered at past levels. This applied both to XETRA trading (up 4.7% at 2.19 trillion), as well as to the Frankfurt trading floor (down 2.17% at billion). Both platforms are suffering from the increas ing global trend for securities trading to relocate to dark pools, internal systems operated by major institutions and other alternative platforms. Nevertheless, despite this tense situation that has persisted for several years, those divisions of Steubing AG most closely connected with securities trading can report positive news. For example, in the field of Integ rated Orderflow Management we continued to record growth in the volume of transactions managed for associated institutions. Specialist Trading countered the trend and saw the volume of turnover in managed order books rise by around 30%. In addition Steubing AG also recorded a slight increase in the number of Designated Sponsor man - dates, while in Derivatives Trading, Steubing Derivatives Brokerage GmbH succeeded in further reducing its costs. Development of various stock indices (Period: 1 July 2013 to 30 June 2014) DAX MDAX TecDAX Stoxx 50 CDAX Banks * 1 Source: Deutsche Börse AG and Bloomberg

4 The new strategy on which we have embarked in the past year in the capital markets business has also proven to be successful. In the Debt Capital Markets (DCM) business area, Steubing supports companies in the structuring and placement of bonds. Although the SME bonds segment has to some extent rightly been the subject of public criticism, since September 2013 we have succeeded in placing a total volume of around 200 million. Four new issues were successfully handled in the second half of the year, for Neue ZWL Zahnradwerk Leipzig GmbH ( 25 million), HELMA Eigenheimbau AG ( 10 million top-up), HanseYachts AG ( 13 million) and VEDES AG ( 20 million). This underscores the fact that provided that bond issues are carefully selected and structured, the market appetite remains strong. Indeed, for further proof, one need only consider that not only were some of the issues heavily oversubscribed, but all of the bonds have since traded at strong prices. In the case of each transaction, the bulk of the issue was taken up by institutional investors. We see SME bonds less in principle as competing with traditional bank loans, than as a supplement to a funding mix of equity and borrowing, a view shared by some of the issuers supported by us. The interconnection between Equity Capital Markets (ECM) and DCM will in future become increasingly important. Transactions such as that for HELMA Eigenheimbau AG, which in parallel with topping up a bond issue also included an increase in 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

5 capital ( 6.8 million) undertaken via us, confirm this tendency. We shall continue to attach great importance to careful selection and structuring, given that as a result of prob - lems with earlier issues, the environment in this market is likely for the time being to remain turbulent. The Steubing German Mittelstand Fund I (SGMF I) was itself unable to en tirely escape this turbulence, however after reaching a low in March 2014, the price has since recovered. It is our intent ion through our activities to continue to contribute to the devel opment and increasing professionalism of this market. Volume weighted price development 1 in % Sept Oct Nov Dec Jan Febr March 2014 April 2014 May 2014 June 2014 Volume weighted price development of the bond issues supported by Steubing AG Macroeconomic Outlook Following an excellent first quarter, growth in Germany has weakened. This is particularly true of the construction sector, which profited in the first quarter from the mild winter weather. As the year progresses, the Eurozone will play a key role. In the first four months of this year the value of exports to the Eurozone rose by 3.9% to billion, representing 42.3% of Germany s export total. This clearly demonstrates that even a slight recovery in the Eurozone is sufficient to immediately elevate demand for German goods. Since the start of the financial crisis, the proportion of exports to the Eurozone has been in continuous decline. In the past this weakness has been overcompensated for by exports to the BRICs (Brazil, Russia, India and China) as well as to the NAFTA (North American Free Trade Agreement) countries. 1 Source: Bloomberg

6 However, in the first four months of this year exports to the BRICs fell by 1.5% to 40 billion. This was mainly attributable to Russia, as the value of exports to the Russian Federation in this period slipped back by 14% to 10.3 billion. Fur - ther declines must be anticipated. In view of the continuing and intensifying sanctions against Russia as a result of the escalating crisis in the Ukraine which reached a temporary climax with the downing of a civilian airliner, we expect exports to be hit still harder. Nor will these losses be balanced out by the gratifying development in exports to China. On the other hand, we do expect that the loss of income from the BRICs will be compensated for by higher exports to the NAFTA area. These will principally be accounted for by the USA, which consumes around 85% of goods shipped to the NAFTA countries. Due to the severe and long-lasting winter weather conditions that set in at the start of this year, growth in German exports to this region were modest in the first few months. This has now changed, with exports in May up by a very respectable 10.5% compared with the year before. The value of these exports at 7.5 billion was almost equal to the volume shipped to Russia in the first four months. The pace of growth in the USA will continue to accelerate. The unemployment rate has dropped to 6.1%, while employment itself has risen above the level that prevailed before the financial crisis. Inflation (measured by the Personal Consumption Expenditure Price Index) is back at 1.8%, and a further increase cannot be excluded. Thanks to the geographically balanced structure of German exports, once again this year the weaknesses in individual consumer countries will be compensated for by the strength of other markets. Overall, we expect this year to see growth of 2.3% in real terms in German gross nation - al product. On the other hand, this could be put at risk by an escalation in the crisis in the Ukraine. The stock markets have largely priced in the improved growth prospects, which have in turn led to a corresponding increase in German companies profit expectations. Based on profit estimates for this year (source: Bloomberg), the Deutscher Aktienindex (DAX ) has virtually reached fair value. As a result investors will increasingly be looking to next year. So far, the managing boards at the head of German companies have not committed themselves to an outlook for Hopefully this will change as profit reports are published for the second quarter. From economic perspective next year is likely to be even better than the current year, which raises the prospect of rising share prices.

7 The bond markets on the other hand will behave differently. The strong, if not even stronger than expected, economic development in the USA will compel the Federal Reserve (Fed) to adjust monetary policy sooner than anticipated. The government and mortgage-backed bond purchasing programme expires in October. The first increase in base rates is then due six months later. We however expect to see such an increase before the end of this year. The goals that such a change in monetary policy is expected to promote have constantly been changed. First of all, it was claimed that interest rates would be raised as soon as unemployment fell below 6.5% or the increase in the cost of living rose above 2%. Then later as the unemployment rate neared the 6.5% mark, the word or was replaced by and. Now that living costs are approaching 2%, the word is that there will be no increase as long as expected inflation remains pegged at 2.5%. The Fed is slowly running out of options. It needs to give a signal, if it is to retain the confidence of market participants. That can only mean action on interest rates in order to begin the process of bringing monetary policy back in line with growth. This will lead to lower prices on the US bond markets, with the result that long-term interest rates will continue their return to normality. In Europe, short-term interest rates will remain low for some longer time to come. Unemployment is still far too high and inflation as a result too low. However higher long-term inter - est rates in the USA will eventually lead to a normalization of returns in Europe too. The Financial Year 2014/2015 at Steubing AG The focus in the initial months of the new financial year was on developing the Institutional Customer Support and Bond Trading business areas. The Research department at Steubing AG was reinforced with three new members of staff and will in future have up to 50 old economy companies predominantly in the steel and electronics sectors on its coverage list. New products such as Steubing View are designed to further increase the value added for institutional customers. In addition our own internal Credit Research service is being expanded. Last but not least, Steubing AG in cooperation with Deutsche Börse AG and youmex AG will again be holding an investors conference in Zurich on 7 October, at which companies of interest in both the stock and bond spaces such as ThyssenKrupp AG, Aixtron SE and PORR AG will be introducing themselves.

8 In the bond trading segment Steubing AG is intensifying its marketing of the OTC trading platform Bondinvest. There are now five orderflow providers linked with Bondinvest, with Steubing AG meanwhile in negotiations with other institut ions. The product range has been expanded to over 3,000 bonds which are offered for trading on a quote request basis. In order to make Bondinvest even more attractive to the orderflow providers end customers, in the coming months the Internet platform will undergo a relaunch. The Debt Capital Markets segment also began the new financial year on a successful operational note. In a private placement, a top-up bond issue was successfully implemented for Gebr. Sanders GmbH & Co. KG. Further mandates are in preparation. In the field of regulation, Steubing AG has successfully implemented the stipulations of the Capital Requirements Directive (CRD) accompanying Basel III. The next item on the agenda will be the reform of the EU Markets in Financial Instruments Directive, generally known as MiFID II. The goals pursued by the EU include harmonising the financial markets, extending the requirements for transparency and improving protection for investors. Given that the new regulatory requirements for trading in dark pools as well as algorithmic and high-frequency trading are also aimed at achieving similar objectives, there may well be new opportunities arising for Steubing AG. The period set aside by the European Securities and Markets Authority (ESMA) for consultation ended on 1 August, and EU member states are required to implement MiFID II by 3 July News comes, too, from the Securities Trading Companies Compensation Fund (EdW), which as of 22 July 2014 has altered its rules on contributions, in a move which will have a particular impact on future special levies. The EdW is responding to some members strategy of voluntarily adding to the General Banking Risk Fund in order to keep special levies as low as possible. Steubing AG, which pursues a traditionally conservative strategy, is unaffected. An application has been made to fix the next special contribution to the current levy at the minimum amount. 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 busi-

9 ness areas include serving as a stock and bond specialist on the Frankfurt Stock Exchange, Integrated Orderflow Management (IOM), Designated Sponsoring, Institutional Customer, Support, Research, Equity/Debt capital markets and investment management for the Steubing German Mittelstand Fund I (SGMF). As of 30 June 2014 the group employed a staff of 64 members. Steubing AG is a member of the Federal Association of Securities Companies on the German Stock Markets (bwf), the Securities Trading Companies Compensation Fund (EdW), the Frankfurt Institute for Risk Management and Regulation (FIRM), and a supporting member of Frankfurt Main Finance e.v., an initiative designed 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. Steubing AG currently supports BB Biotech AG, China HGS Real Estate Inc., Colt Resources Inc., Formycon AG, Fuchs Petrolub SE and Global Hemp Group Inc.

10 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 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 professional experience provide up-to-the-minute macro economic analyses, as well as company and sector reports in the steel, electronics, mechanical engineering, industrial and automotive sectors. The daily products Morning News and Steubing View as well as our Credit Research service round off the 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 DEUTSCHE BÖRSE der mittelstandsmarkt Ein Segment der Börse Düsseldorf LISTING PARTNER

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