presentation 2006 results - english final · annual results presentation 2006 swx, february 9, 2007...
TRANSCRIPT
1
SwissquoteSwissquote
Annual Results Presentation Annual Results Presentation
20062006SWX, February 9, 2007 SWX, February 9, 2007
2
• Introduction
• Key figures 2006
• Results for the 4th quarter 2006
• Balance sheet
• Distribution of profit
• System expansion and new services
• Business model
• Targets 2007
AgendaAgenda
3
IntroductionIntroduction
4
IntroductionIntroduction
• Best year and best quarter in Swissquote’s history with
15,010 new clients, inflow of just under CHF 1 billion new
funds and 60 percent revenue growth
• 5th year of client growth above 25%
• Net profit margin of 49 percent
• Strong development of the company with a staff increase
of 23% to 160
• CHF 5.- distribution of profit to shareholders and share split
5
Key Key ffiguresigures 20062006
6
Net revenuesNet revenues 74.7m74.7m
Net profitNet profit 36.5m36.5m
ClientsClients 64,06764,067
AssetsAssets 4,492m4,492m
ComparedCompared to 2005to 2005
+60.3%+60.3%
+148.8%+148.8%
+30.6%+30.6%
+50.4%+50.4%
+28.1m+28.1m
+21.8m+21.8m
+15,010+15,010
+1,506m+1,506m
EquityEquity 93.5m93.5m +39.6%+39.6%+26.5m+26.5m
Key figures 2006Key figures 2006
7
StrongStrong organicorganic growthgrowth
733
1'560
2'019
2'986
4'492
0
10'000
20'000
30'000
40'000
50'000
60'000
70'000
2002 2003 2004 2005 2006
-
500
1'000
1'500
2'000
2'500
3'000
3'500
4'000
4'500
5'000
Clients Assets
8
CostCost//incomeincome ratio ratio belowbelow 50%50%
29'79734'273
46'628
5'129 6'05714'683
36'529
74'747
77.0% 76.1%
65.7%
49.0%
-
10'000
20'000
30'000
40'000
50'000
60'000
70'000
80'000
2003 2004 2005 2006
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Net Revenues Net Profit Cost/Income RatioCHF '000
9
191 192 186200
165
0
500
1'000
1'500
2'000
2'500
3'000
3'500
4'000
4'500
5'000
2002 2003 2004 2005 2006
0
25
50
75
100
125
150
175
200
225
Assets under Custody Asset Margin
Stable Stable assetasset marginmargin
10
LeverageLeverage effecteffect isis keykey for for successsuccess
740
1'115
9731'053
1'3221'262
859
740692
648
0
200
400
600
800
1'000
1'200
1'400
1'600
2002 2003 2004 2005 2006
Average Revenue & Costs per clientCHF
11
HigherHigher thanthan averageaverage transaction transaction numbersnumbers
15
23
1920
25
-100'000
100'000
300'000
500'000
700'000
900'000
1'100'000
1'300'000
1'500'000
2002 2003 2004 2005 2006 -
5
10
15
20
25
30
Total Trades Trades per Client per Year
12
Key Key figuresfigures for the 4for the 4thth qquarteruarter 20062006
13
StrongStrong revenue revenue growthgrowth (CAGR = 60%)(CAGR = 60%)
0.0
2'500.0
5'000.0
7'500.0
10'000.0
12'500.0
15'000.0
17'500.0
20'000.0
22'500.0
Q2-03
Q3-03
Q4-03
Q1-04
Q2-04
Q3-04
Q4-04
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
Q3-06
Q4-06
EBITDA
Quarterly Revenues
14
The commission business The commission business isis dominantdominant
5% 7%
8%
18% 62%
Custody & other Fees & Commission Interest Trading Other
15
Revenue Revenue growthgrowth in all in all reportedreported segmentssegments
0
5'000
10'000
15'000
20'000
Q2-03
Q3-03
Q4-03
Q1-04
Q2-04
Q3-04
Q4-04
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
Q3-06
Q4-06
Other (Platform)
Trading
Interest
Net Fee & Commission Income
16
OpexOpex are are coveredcovered by nonby non--commission revenues commission revenues
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
Q2-03
Q3-03
Q4-03
Q1-04
Q2-04
Q3-04
Q4-04
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
Q3-06
Q4-06
Opex Coverage
17
6.7% more clients in the 46.7% more clients in the 4thth quarter quarter ……
4036
0
5'000
10'000
15'000
20'000
25'000
30'000
35'000
40'000
45'000
50'000
55'000
60'000
65'000
Q2-03
Q3-03
Q4-03
Q1-04
Q2-04
Q3-04
Q4-04
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
Q3-06
Q4-06
Quarterly Client Growth
18
…… and 245m net new and 245m net new moniesmonies
245
0250500750
1'0001'2501'5001'7502'0002'2502'5002'7503'0003'2503'5003'7504'0004'2504'5004'750
Q2-03
Q3-03
Q4-03
Q1-04
Q2-04
Q3-04
Q4-04
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
Q3-06
Q4-06
Net Assets InflowCHF Mio
19
Client Client growthgrowth isis acceleratingaccelerating
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
7000001-03
04-03
07-03
10-03
01-04
04-04
07-04
10-04
01-05
04-05
07-05
10-05
01-06
04-06
07-06
10-06
01-07
0
20
40
60
80
100
120
140
160
180
200Total Accounts Requests
20
HNWI clients are HNWI clients are growinggrowing fasterfaster
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2003 2004 2005 2006
Original Clients
Emergent Client
21
Balance Balance sheetsheet
22
Balance Balance sheetsheet
67.0
610.0
692.0
93.5
910.4
1033.0
- 200.0 400.0 600.0 800.0 1,000.0 1,200.0
Equity
Due to customers
Total balance
sheet
CHFm
2005 2006
23
Structure of Structure of assetsassets atat 31.12.200631.12.2006
Structure of assets
91%
6%
1%
1%
1%9%
Cash Loans to customersProperty & systems Deferred taxesOther assets
24
Structure of Structure of assetsassets atat 31.12.200631.12.2006
Structure of liabilities and equity
88%
3%
9%
12%
Due to customers Other liabilities Equity
25
Distribution of profitsDistribution of profits
26
Operating profitOperating profit 34.8m34.8m
IncomeIncome taxtax, net, net 1.7m1.7m
Net profitNet profit 36.5m36.5m
EarningsEarnings per per shareshare 25.8425.84
20052005
13.0m13.0m
1.7m1.7m
14.7m14.7m
10.5610.56
ProfitProfit
20062006
27
Distribution of profit and Distribution of profit and shareshare splitsplit
• The board will propose to the GA a further distribution
to shareholders in the form of
• A capital reduction of CHF 3.- per share
• A dividend of CHF 2.- per share
• 10 for 1 split
1.00
2.00
2.00
3.00
0
1
2
3
4
5
6
2004 2005 2006
Capital Reduction
Dividend
28
System expansion and new servicesSystem expansion and new services
29
System expansion 2006System expansion 2006
• Mobile trading (Wap)
• New OTC trading with German issuers (Deutsche Bank,
Commerzbank, Citigroup, Goldman Sachs and HSBC)
• New Stock Exchanges: London and Smart Trading
• New online wealth management tool: "Profit & Loss"
• New financial data provider: Reuters
• Further development of the AM tool for asset managers
• Launch of the "AWP Premium News Service" for clients
30
Business modelBusiness model
31
SelectedSelected EuropeanEuropean marketmarket playersplayers by countryby country
France
Population: 60.7 MM
– Boursorama
– CortalConsors
– Comdirect
– Fineco
– Neonet
Greece
Population: 11.2 MM
– National Bank of Greece
– I.E.C. Haramis
Spain
Population: 41.8 MM
– CortalConsors
– Boursorama
– Bankinter
– Openbank
– Fineco
Italy
Population: 57.4 MM
– Fineco
– CortalConsors
– Comdirect
– Neonet
UK
Population: 59.9 MM
– TD Waterhouse
– Squaregain
– Barclays Stockbroker
– Selftrade
– Hoodless Brennan
– Comdirect
– Boursorama
– Charles Schwab
– Neonet
Switzerland
Population: 7.5 MM
– Swissquote
– Trade-Net
– Yellowtrade (Postfinance)
– E-Sider (BCV)
– Synthesis Bank
– Tradejet
Austria
Population: 8.2 MM
– DAB Bank
– Direkt Anlage Service AG
– CA-Discount Broker
– Comdirekt
– Erste.NetTrading
Belgium
Population: 10.4 MM
– Fortis DAD
– CERA
– Binck NV
– CortalConsors
Sweden
Population: 9.0 MM
– Aktiedirekt
– Aktieinvest
– AktieSpar Online
– Avanza
– E*Trade Sverige
– Neonet
– Nordnet
– SEB
Norway
Population: 4.6 MM
– NetTrade
– E*Trade Norway
– Nordnet
Luxembourg
Population: 0.5 MM
– Internaxx
– Nordnet
– CortalConsors
– Fineco
Poland
Population: 38.5 MM
– Bankowy Dom Maklerski
PKO BP S.A.
– Biuro Maklerskie BPH -
PBK S.A.
– Centralny Dom Maklerski
Pekao S.A.
– Internetowy Dom Maklerski
S.A
– mBank
Hungary
Population: 10.1 MM
– Intereuropa Bank Rt
– Erste.NetTrading
– Elso Internet Broker Kft
Denmark
Population: 5.3 MM
– Nordnet
– Saxo bank
– Euroinvestor
– Stocknet
Netherlands
Population: 16.2 MM
– Alex (Rabobank)
– Binck NV
Germany
Population: 82.6 MM
– DAB Bank
– CortalConsors
– Comdirekt
– Boursorama
– DiBa (ING)
– Fineco
– Neonet
32
EquityEquity ownershipownership in in SwitzerlandSwitzerland
Swiss Banking Institute © Cocca / Volkart / Schmid
Universität Zürich
33
Swiss Banking Institute © Cocca / Volkart / Schmid
Universität Zürich
Information mediaInformation media
34
Swiss Banking Institute © Cocca / Volkart / Schmid
Universität Zürich
WebsiteWebsite usageusage
35
Swiss Banking Institute © Cocca / Volkart / Schmid
Universität Zürich
InvestmentInvestment goals goals withwith privateprivate equityequity investmentsinvestments
36
Swiss Banking Institute © Cocca / Volkart / Schmid
Universität Zürich
Transmission of stock Transmission of stock ordersorders
37
MarketMarket potentialpotential* in * in SwitzerlandSwitzerland
*No. of clients (source: Swissquote & Handelszeitung)
28%60%
12%
Existing Online Clients Next Adopters Not Online Affine Yet
• Over the medium term, up to 40% of shareholders in
Switzerland (400,000 clients) will be using online services
such as Swissquote's
• 125,000 already have an online account with a low cost
online bank
• 310,000 clients regularly use the internet to send stock
exchange orders
38
SwissquoteSwissquote's's marketmarket shareshare
52%
48%
Swissquote Other Online Broker
*No. of clients (source: Swissquote & Handelszeitung)
• Swissquote has a market share of 52%
• Swissquote can grow its client base to 200,000 by 2011
(25% growth p.a.)
39
ConclusionConclusion
• In every European country a market leader has emerged
with a strong affinity to the local retail market.
• Cross-border offers and offers from foreign market leaders
are only moderately successful.
• The "Swissness" of the provider is a crucial factor.
• Switzerland’s online brokerage market still has growth
potential of over 220%. Swissquote can thus still triple its
client base.
40
ConclusionConclusion
• To exhaust this potential a provider must:
1. Offer a broad product range
2. Have a strong information platform
3. Have inhouse technlogy
4. Provide tools that help the client to make investment
decisions
5. Ensure good conditions in all product categories
41
Outlook and goals for 2007Outlook and goals for 2007
42
Goals for 2007Goals for 2007
• Energetic growth in all client groups
16,000 new clients in 2007 (80,000 clients in all) with 1
billion in new money
• Expand services and establish links with new exchanges
(Eurex in the 1st quarter 2007) and new investment decision
tools
• Further increase in productivity and reduction of costs per
client in 2007
• Partnership with Swisscom to be expanded further
• Sponsoring contract with SF1 TV renewed until August
2008
43
PartnershipPartnership withwith SwisscomSwisscom
44
45
1st quarter 20071st quarter 2007
• The 1st quarter is going well
• Strong growth in clients and client assets
64000
64500
65000
65500
66000
66500
67000
67500
68000
68500
69000
01.0
1
08.0
1
15.0
1
22.0
1
29.0
1
05.0
2
12.0
2
19.0
2
26.0
2
05.0
3
12.0
3
19.0
3
26.0
3
Total Accounts Target