FY 2023

RESULTS

PRESENTATION

22 March 2024

2023

Lausanne

Summary of CFT's FY2023 key financial metrics

Strong financial performance in spite of CHF strengthening further

Variations in constant currencies

+9.5%

CHF 1,054m

Revenue*

Productivity up 12%

+17.1%

CHF 128m

Operating

profit*

Margin: 12.1%

+15.9%

CHF 94m

Net profit - Group share

Basic earnings

per share: CHF 12.71

+6.3%

CHF 454m

Shareholders'

equity**

+28.6%

CHF 260m

Net cash position*

2

*Including group share of joint ventures

**Before deduction of treasury shares of CHF 27.5m. Reported shareholders' equity amount to CHF 426.0m as at 31 December 2022

FY2023 confirming the longer term track record

A long established Swiss group focused on critical size and sound balance sheet

Consolidated revenue, shareholders' equity and net cash (including share of JVs)

1

1200

600

mCHF

Focus on organic growth and sound financial position:

  • Strong net cash position
  • Growing shareholders equity with low level of intangibles

2

1000

500

800

400

3

600

300

4

400

200

200

100

0

-

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Total equity

Net cash at constant rate

Revenue at constant rates

Opportunities arising from structural developments

  • Data and Analytics dedicated business line
  • Data science lab since early 2021 with state of the art Data platform
  • Hybridization in the context of digitalization
  • Blurring of traditional market boundaries

Developed expertise in cost management

  • Cultural change without losing market share

Consistent dividend distribution to shareholders

  • Complemented by share buy-back program

A new ambition

  • A change of paradigm from the normalization of the Central banks monetary policies
  • Creating long term value through growth, profitability and cash conversion

3

CFT's track record of delivering return for shareholders, a demonstration of the Group's DNA, long term vision and ambition

A total return of 17.4% p.a. with dividends reinvested in shares since 1 January 1997

Total Return Analysis (TRA) - 1/1/1997 and 21/3/2024

4

Source: Bloomberg

Consistent dividend policy

Cumulative dividends of CHF 50 paid during 2013 to 2023 excluding distribution of treasury shares

Dividend payout trend 2013 to 2023

in CHF

Dividend CHFin

5.0

5.0

5.0

5.0

5.0

5.5

4.5

3.0

3.5

2.5

2013

2014

2015

2016*

2017

2018*

2019*

2020*

2021*

2022*

+9.1%

Payout %in

106%

CHF 6

71%

57%

59%

72%

67%

58%

57%

FY2023 Cash

52%

47%

dividend1)

2013

2014

2015

2016*

2017

2018*

2019*

2020*

2021*

2022*

Payout: 47%

6.5%

Yield: 4.6%2)

5.4%

5.5%

5.2%

4.8%

4.7%

5.0%

4.7%

5.0%

4.4%

Yield in %

2013

2014

2015

2016*

2017

2018*

2019*

2020*

2021*

2022*

*An additional distribution of one treasury share for shares held above the dividend in cash (2022 : 1:100, 2021 : 1:100, 2020 : 1:75,

2019 : 1:50, 2018 : 1:35; 2016 : 1:25)

  • 1) Subject to shareholders approval at the 21 May 2024 General Assembly
    2) Value based on 21 March 2024 clsing share price of 130 CHF per share

Normalization of central banks monetary beneficial to the Group's operations

Momentum from organic growth strategy; impact from CHF strength on reported revenue and profitability

+10.6%

+9.5%

+17.1%

+19.7%

+16.1%

+13.4%

+15.9%

1 028.6

950.8 947.4

1 053.9

982.4

873.6

2023

margin

2022

margin

12.1%

2021

margin

11.4%

10.7%

9.9%

127.7

9.9%

127.2

117.4

120.1

8.4%

105.5

101.1

94.1

94.2

97.4

94.4

89.1

85.0

73.2

71.5

65.3

RevenueOperating profit including Reported operating profit Profit before taxNet profitNet profit Group share

share of JVs

Basic earnings

per share

811.76.83

12.71

  • Supported by organic growth in particular in Energy and Commodities
  • Brokers improved productivity up +12.4%

6

  • Group net cash position including share of JV up 28.6% in constant currencies or CHF approx. 60mm to CHF 260m (total gross cash reaching CHF 470m).
  • Net interest income up CHF 9.4m with income from gross cash investments
  • Proposed cash dividend up close to 10% to CHF 6.0 per share; Share buybacks set to accelerate in 2024
  • Continued momentum in 2024

(variation y-o-y in constant currency)

(Revenue including share of JV variation y-o-y in constant currency)

One of only 3 global Wholesale and Institutional brokerage firms

A diversified transactional platform servicing the world's largest banks and non bank institutions

The world's largest banks and non bank institutions, looking for quality of information and trusted relationships to confidently trade large transactions

Tradition market place

Clients

Desks

7'500+ 300+

Asset classes Product groups

Products

5 25+ 200+

Expertise in complex transactions, illiquid instruments, difficult market conditions

No position taking and associated balance sheet risk

Activities regulated by local authorities in almost all countries

A business model based on high volume x low commission rates

Annual # of trades

Currencies

~3 million

80

Annual notional volumes

~250'000 billion (1tr/day)

7

Critical market infrastructure component in sourcing liquidity and price discovery

Growth in both wholesale and retail businesses in constant currencies Gaitame reported revenue impacted by JPY weakening

Reported revenue and revenue including share of JV

M CHF

Joint ventures

+9.5%

Subsidiaries

(reported)

1 028.6

1 053.9

950.8

81.2

71.5

77.2

Revenue including share of JV by business

Wholesale

+9.6%

M CHF

917.0

994.7

1 022.5

487.2

+7.6%

488.5

442.5

H2

H1

507.5

+11.6%

534.0

474.5

2021

2022

2023

873.6

947.4982.4

Retail

+5.5%

33.8

33.9

31.4

H2

-7.3%

17.3

16.3

13.0

H1

+18.7%

16.5

17.6

18.4

2021

2022

2023

2021

2022

2023

8

(All variation at constant rates)

Diversified revenue portfolio both in terms of geographies and asset classes

Positive revenue development trend reflected in all regions

Breakdown by region in 2023

United

Asia Pacific;

Kingdom;

26%

26%

Americas;

33%

Continental Europe; 15%

including JVs by

+4.7%

+20.5%

+4.4%

Trend by region

Non IDB

APAC

Americas

CE

UK

4%

3%

3%

24%

24%

23%

28%

31%

33%

12%

14%

15%

Revenue share of region

1028.6

1'053.9

32%

28%

26%

2021

2022

2023

2022

EMEA

Americas

Asia-Pacific

FX impact

2023

9

Diversified revenue portfolio both in terms of geographies and asset classes

Strong improvement in Energy and Commodities products supported by organic growth

Currencies and

Securities and

Energy and

rates

security derivatives

Commodities

Retail FX

•

Interest rate

•

Government

•

Oil

• Gaitame.com -

derivatives

bonds

•

Electricity

Online retail forex

(eg IRS, IRO)

•

Corporate bonds

•

Gas

brokerage

•

Money markets

•

Credit derivatives

•

Metals

•

FX forwards

•

Repos

•

Environmental

(o/w NDFs)

•

Equities and

•

Energy C&I

•

FX options

equity derivatives

  • Futures and options

by

+0.5%

+8.0%

+32.7%

Wholesalerevenue shareincludingof JVs product

994.7

1022.5

2022

Currencies and Rates

Securities and

Energy,

FX

2023

Derivatives

Commodities and

Other

Breakdown by product in 2023

Non IDB; 3%

IDB: 97%

Energy; 23%

Currencies &

Rates; 41%

Securities;

33%

Trend by product

Non IDB

Energy

Securities

Currencies & Rates

4%

3%

3%

20%

20%

23%

32%

32%

33%

44%

45%

41%

2021

2022

2023

10

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Disclaimer

CFT - Compagnie Financière Tradition SA published this content on 22 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2024 13:48:16 UTC.