présentation powerpoint - fimalacsales by activity (in € millions) 1h 2012 (jan 12 - jun 12) 1h...

Presentation

Summary

First half consolidated results

(January 1, 2013 – June 30, 2013)

Note : Following the change of fiscal year end and to facilitate comparisons between accounting periods, pro forma figures are presented for the first-half.

Group structure

Scope of consolidation

♦ 50 % of Fitch • Fimalac’s 50% interest in Fitch Group is accounted for by the equity method

after the sale of 10% on April 11, 2012

• The net gain on the sale was accounted for in 1H 2012

• Fitch acquired 7city in january 2013

♦ 80 % of North Colonnade

• Fully consolidated

♦ 40 % of Groupe Lucien Barrière (GLB)

• Accounted for by the Equity method

♦ 100 % of VEGA


♦ 40 % of Gilbert Coullier Productions


♦ 40 % of Auguri Productions


♦ Fimalac, Fimalac Développement, holdings


Sales by activity

(in € millions) 1H 2012

(Jan 12 - Jun 12)

1H 2013 (Jan 13 - Jun 13)

Real estate sector 3.0 3.0

Entertainment 12.4 20.5

Others 0.4 0.1

Consolidated Sales

(reported)

15.8

23.6

EBITDA (*) by activity

(*) EBITDA : Recurring operating income + Depreciation, amortization and provisions


(Jan 12 - Jun 12)

1H 2013 (Jan 13 - Jun 13)

Real estate sector 1.8 1.4


Others -2.6 -5.2

Consolidated EBITDA

(reported)

0.2

-2.5

Recurring operating income by activity


(Jan 12 - Jun 12)

1H 2013 (Jan 13 - Jun 13)

Real estate sector -0.3 -0.7


Others -2.9 -5.5

Consolidated recurring operating

income (reported)

-2.9

-5.8

From Operating Result to Net Earnings


(Jan 12 - Jun 12)

1H 2013 (Jan 13 - Jun 13)

Net result from fully consolided companies :

Recurring operating result -2.9 -5.8

Net financial result -3.7 5.2

Others (miscellaneous, taxes, minority interests) -2.7 -3.2

-9.3 -3.8

Fitch Group profit for the period 30.1 39.0

Profit and losses of others associates -0.1 1.6

NET EARNINGS - Group Share EXCLUDING CAPITAL GAIN

20.7 36.8

Net gain on the sale of 10 % of Fitch Group

(April 2012) 81.2

NET EARNINGS – Group share 101.9 36.8

Cash and Cash Equivalents / (Net Debt) by Company

(in € millions) 12/31/2012 06/30/2013

North Colonnade -249 -236

Parent Company and others 128 110

Consolidated net Cash/(Debt) Position -121 -126

Amount of consolidated equity (€ millions) 777 750

Gearing ratio (Net debt / Equity) 15.6% 16.8%

Fitch Group

Main figures in Euros

Fitch Group Sales

(in € millions)

1H 2012

(Jan 12 - Jun 12)

1H 2013 (Jan 13 - Jun 13)

Change

Sales - reported 317.1 378.4 19.3%

Currency Translation Impact

(no changes in consolidation scope) - 6.1

Sales - like-for-like 317.1 372.3 17.4%

Fitch Group Sales by segment


(Jan 12 - Jun 12)

1H 2013

(Jan 13 - Jun 13)

Change

reported

Change

Like-for-like

Fitch Ratings (Ratings):

Corporate Finance 147.5 186.0 26.1% 27.6%

Structured Finance 75.0 78.2 4.2% 5.8%

Public Finance 26.1 28.5 9.2% 10.0%

248.7 292.7 17.7% 19.2%

Fitch Solutions (Reseach, subscriptions)

50.3 55.4 10.0% 13.2%

Fitch Learning (*) (specialized training)

3.4 15.0 NS (*) NC (*)

Others (**) 14.7 15.3 4.0% 1.0%

SALES - FITCH GROUP 317.1 378.4 19.3% 17.4%

(*) Fitch Learning results from the merger of Fitch Training and the company 7city, acquired at the end of January 2012.

(**) « Non-ratings » activity of Korea Ratings

Fitch Group Sales by region


(Jan 12 - Jun 12)

1H 2013 (Jan 13 - Jun 13)

Change

reported

Change

Like-for-like

North America 129.0 152.9 18.5% 18.8%

EMEA

(Europe, Middle East, Africa) 110.3 142.4 29.1% 23.1%

Latin America 28.0 30.7 9.9% 11.8%

Asia Pacific 49.8 52.4 5.2% 4.5%

SALES - FITCH GROUP 317.1 378.4 19.3% 17.4%

Fitch Group Sales by country (reported)


(Jan 12 - Jun 13) %

1H 2013

(Jan 13 - Jun 13) %

1 USA 126.1 39.8% 143.6 37.9%

2 UK 25.6 8.1% 38.9 10.3%

3 South Korea 27.7 8.7% 27.2 7.2%

4 Germany 11.1 3.5% 14.6 3.9%

5 France 7.7 2.4% 10.7 2.8%

6 Brazil 9.3 2.9% 9.1 2.4%

7 Switzerland 7.8 2.5% 8.3 2.2%

8 Italy 7.1 2.2% 8.3 2.2%

9 Netherland 6.9 2.2% 8.0 2.1%

10 Mexico 7.0 2.2% 7.3 1.9%

Total Sales % - Fitch Group 74.5% 72.9%

Fitch Group - EBITDA (*)

(*) EBITDA : Recurring Operating Income + Depreciation, amortization and provisions

(in € millions)

1H 2012

(Jan 12 - Jun 12)

1H 2013

(Jan 13 - Jun 13)

Change

EBITDA reported 120.3 159.6 32.7%

Currency Translation Impact and

change in perimeter 3.1

EBITDA like-for-like 120.3 162.7 35.2%

EBITDA / Sales margin reported 37.9% 42.2%

EBITDA / Sales margin like-for-like 37.9% 43.7%

Fitch Group - Recurring operating income

(in € millions)

1H 2012

(Jan 12 - Jun 12)

1H 2013 (Jan 13 - Jun 13)

Change

ROC reported 105.7 139.6 32.1%

Currency Translation Impact and

change in perimeter 3.9

ROC like-for-like 105.7 143.5 35.8%

ROC/Sales margin reported 33.3% 36.9%

ROC/Sales margin like-for-like 33.3% 38.5%

Fitch Group - Cash and Cash Equivalents (Net Debt)

(in € millions) 12/31/2012 06/30/2013

Net cash / (debt) position 19 -39

Overview

• Strong financial performance for Fitch Group in the 6 months ended June 2013 with growth across all lines of business

• Favorable debt issuance trends in non-financial corporate and structured finance sectors

• Issuance fees represent one of many revenue drivers for the ratings business

• Continued growth in recurring revenue due to progress in renewing issuer relationships

• Continued demand for the credit-related research, data and analytics offered by Fitch Solutions

• Acquisition of 7city Learning and formation of Fitch Learning, a global leader in financial training, and the third leg of Fitch Group

Corporate Overview and Structure

• A global leader in financial information services with expertise and critical mass across the credit spectrum

• Dual-headquartered in New York and London

• Approximately 2,500 employees in 50 offices across the globe

• Jointly owned by Fimalac and Hearst Corporation

• 2013 is Fitch’s 100th year in business

50% 50%

100% 100%

FitchRatings FitchSolutions 100%

FitchLearning

Global Presence

• Strong presence in developing as well as key emerging markets within Asia and Latin America

Mumbai

Monterrey

Mexico City

San Jose

San Salvador

Lima

Santiago

Quito

São Paulo

Buenos Aires

Bogota

Milan

Barcelona

Madrid

Rio de Janeiro

Montevideo

Caracas

Paris

Frankfurt Warsaw

Moscow

Sandton

Bangalore

Hyderabad

Colombo

Tokyo

Hong Kong

Seoul

Bangkok

Taipei

Beijing

Singapore

Sydney

Kolkata

Chennai

New Delhi

Jakarta

Dubai Guatemala

Toronto

New York

Chicago

San Francisco

Austin

Stockholm

Shanghai London

Istanbul

Fitch Group Revenue to Operating Income

6 months ending June 2013

(in US$ millions) 1H 2012

(Jan 12– Jun 12)

1H 2013 (Jan 13– Jun 13)

% change

As-Reported

% change

Like-for-Like

Revenue 411.4 497.2 20.9% 17.4%

Personnel costs 177.8 202.2 13.7%

External expenses 77.6 85.2 9.8%

Total charges 255.4 287.4 12.5%

EBITDA 156.0 209.8 34.5% 35.2%

EBITDA Margin 37.9% 42.2%

Profit sharing plan 9.7 14.8

Depreciation & Amortization 9.2 11.6

Operating Income 137.1 183.4 33.7% 35.8%

Operating Income Margin

33.3% 36.9%

Note: Includes Fitch Learning

Fitch Group Revenue by Segment


(in US$ millions) Revenue

1H 2012 (Jan 12– Jun 12)

1H 2013 (Jan 13– Jun 13)

% change

As-Reported

% change

Like-for-Like

FITCH GROUP 411.4 497.2 20.9% 17.4%

Corporate Finance 191.3 244.4 27.7% 27.6%

Structured Finance 97.3 102.7 5.6% 5.8%

Public Finance 33.9 37.5 10.6% 10.0%

Fitch Ratings 322.5 384.6 19.3% 19.2%

Fitch Solutions 1 65.3 72.8 11.5% 13.2%

Fitch Learning 4.4 19.7 N/S N/S

Other 2 19.2 20.1 4.7% 1.0%

1 Excludes Fitch Training which is now included within Fitch Learning

2 Includes non-ratings business within Korea Ratings; ratings business in Korea is included in the Fitch Ratings revenue

Fitch Group Revenue by Region



1H 2012 (Jan 12– Jun 12)

1H 2013 (Jan 13– Jun 13)

% change

As-Reported

% change

Like-for-Like

FITCH GROUP 411.4 497.2 20.9% 17.4%

North America 167.3 200.9 20.1% 18.8%

EMEA 143.1 187.1 30.7% 23.1%

Latin America 36.3 40.4 11.3% 11.8%

Asia Pacific 64.7 68.8 6.3% 4.5%

Macroeconomic Environment

• Global economic conditions are expected to strengthen slowly as the U.S. recovery gathers steam and the EU approaches a cyclical turning point

Source: Fitch Global Economic Outlook (June 2012)

• Pace of recovery and Central Bank policy in major advanced economies

‒ U.S. private sector growth is supported by housing market recovery, improving balance

sheets, increasing corporate profitability, and relatively loose monetary conditions set by

the Federal Reserve.

‒ In the EU, Fitch expects a weak recovery to start in late 2013 as gains in competitiveness

and rebalancing bear fruit, fiscal consolidation eases, and credit channels are repaired.

‒ The Federal Reserve has started communicating about its exit plan from the current

monetary settings, creating uncertainty over the impact on global growth, capital flows,

and interest rates.

‒ Fitch expects that the four large central banks (Fed, ECB, Bank of England and Bank of

Japan) will design their exit strategies in line with domestic economic growth outlooks.

• Growth in emerging markets continues to outpace that in advanced economies but the larger

emerging markets are strained due to spill-overs from advanced economies, difficult policy

trade-offs, problems with credit growth, and structural bottlenecks.

Global Debt Issuance

• Corporate issuance remained strong given

the low interest rate environment.

• Issuance from Financial Institutions was

relatively weak due to market concerns

over the Federal Reserve’s announcement

in June regarding quantitative easing.

• Structured finance issuance continued to

recover especially in the U.S., although

some asset classes stayed depressed.

Source: Dealogic, Fitch Ratings

Calendar Quarter

• Global debt issuance totaled approximately $3.3 trillion in 1H 2013, a modest 2% decline over the prior year

Calendar 2011

Calendar 2012

Calendar 2010

1H 2013

Corporate Finance Debt Issuance

• Bond issuance in non-Financial Corporates saw a 10% increase in 1H 2013 as compared to the prior year

• Strong issuance activity as issuers continued to access bond markets for their

refinancing requirements.

• Investment Grade volume was 17% higher than prior year. High Yield bond issuance

grew more than 55% as issuers took advantage of low interest rates.

• Financial Institutions issuance declined 2% in 1H 2013 as compared to the prior year

• Market volatility following the Federal Reserve’s announcement on the reduced pace of

quantitative easing resulted in a slight dip in issuance in June.


Structured Finance Debt Issuance

• ABS issuance grew as a result of

continued strong issuance from the auto

segment.

• CMBS issuance continued to be strong,

more than doubling from prior year, but

RMBS continued to lag behind.

Calendar Quarter

• Global Structured Finance issuance was up 9% in 1H 2013 compared to prior year


Calendar 2011

Calendar 2012

Calendar 2010

1H 2013

US Public Finance Debt Issuance

Source: SIFMA

• US municipal bond issuance in 1H 2013 was 8% lower than prior year

• Many municipal bond issuers completed their refunding needs in 2012, resulting in comparatively lower issuance in the first half of 2013.

Calendar 2011

Calendar 2012

Calendar 2010

1H 2013

Fitch Solutions

• Fitch Solutions experienced steady organic growth during the year

• High client retention rates despite challenging market conditions

• Broad client base with significant opportunities for penetration and growth

• Demand for Fitch Solutions’ offerings in research, data, and analytics remains robust

• Increased demand for credit information related to capital market activity

• Regulatory compliance and transparency requirements from Basel III, Solvency II, etc.

• Focus on managing credit and counterparty risk exposure, especially in the wake of the financial crisis in Europe

• Fitch Solutions continues to focus on

• Innovation and new product development that address the needs of capital market participants

• Greater commercialization of Fitch Ratings’ research content

• Strategic expansion of third-party distribution channels

• Fitch Learning combines 7city Learning and the existing Fitch Training division and delivers training services globally, specializing in training for the Financial Services industry.

Offerings

Tailored Learning Bespoke instructor led courses. Includes introductory on-boarding graduate and intern programs as well as continuing education services.

Open courses Public instructor-led courses covering both introductory and specialist topics.

Learning Solutions Technology and consulting. Offers e-learning and training management / consultancy services.

Professional Qualifications Chartered Financial Analyst (CFA), Certificate in Quantitative Finance (CQF) and Regulatory exam preparation

Strategic Objectives • To form a vocational bridge between higher

education and full time employment, acting as a lifelong career partner.

• To build a product-agnostic education platform with opportunities to expand into other industries and sectors.

Channels and Regions Two key routes to market: Corporate Sales and Channel Sales, with operational and commercial reach out of four regional centres – London for Europe, NY for Americas, Dubai for Middle East /Africa, Singapore for Asia.

Fitch Learning

• Fitch Learning reported $19.7 million in revenue in the first half of 2013



1H 2013 (Jan 13– Jun 13)

FITCH LEARNING 19.7

Chartered Financial Analyst (CFA) 4.5

Credit, Risk and Corporate Finance* 4.1

Professional Skills 3.5

Certificate in Quantitative Finance (CQF) 3.3

Regulatory Exam Training 3.1

Learning Solutions 0.9

Other 0.3

* Previously known as Fitch Training

Fitch Learning

Conclusion

• Fitch remains committed to the following principles:

• Credit Expertise

• Investor Focus

• Leadership

• Perspective

• Transparency

• Despite market volatility, capital market trends continue to be favorable in the long-term and Fitch’s businesses have performed well in the 6 months ended June 2013

37 casinos

Including 33 in France, 3 in

Switzerland and 1 in Egypt

15 luxury hotels

Including 14 in France and

1 in Morocco

Almost 130 restaurants and bars


(Nov 11 – April 12)

1H 2013

(Nov 12 – April 13) Change

Summary income statement

Revenue (before gambling taxes) 531.8 517.1 - 2.8 %

Casino (before gambling taxes) 428.6 415.1 - 3.1%

Casino (after gambling taxes) 189.5 185.1 - 2.3%

Hotels and Others 103.2 102.0 - 1.1%

EBITDA 57.6 53.0 - 8.0%


6 months

1H 2013

6 months Change

Show production 40.7 52.2 + 28.2 %

Venue management

operations 12.4 18.4 + 48.4 %

Total 53.1 70.6 + 33.0 %

France’s leading show production company (concerts, one-man shows,

musical and circus shows…), for mainly French-speaking artists.

The artists’ portfolio includes well established singers and comedians

as well as upcoming artists, the most famous of which are : Johnny

Hallyday, Céline Dion, Michel Polnareff, Serge Lama,

Véronique Sanson, Gad Elmaleh, Laurent Gerra, Michel Sardou,

Vanessa Paradis, Thomas Dutronc, David Guetta.

France’ leading operator with around 25 facilities, including the

Zenith concert halls and a number of multi-purpose complexes, in a

dozen or so large cities around France.

présentation powerpoint - fimalacsales by activity (in € millions) 1h 2012 (jan 12 - jun 12) 1h...

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