SIX Reports Solid Results for 2022 Despite Challenging Market Conditions

SIX successfully grew in the majority of its business units at constant currencies, despite the challenging environment. The diversified business model of SIX once again demonstrated its worth. The year under review also marked the second consecutive year of BME fully contributing to the company results. Going forward, SIX will continue to focus on tapping into further client segments and leveraging business opportunities in the areas of ESG and digital assets.

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Selected Financials for 2022

  • Operating Income amounted to CHF 1,494.1 million (-0.3% in reporting currency, +2.1% at constant currencies)
  • Earnings before interest, tax, depreciation and amortization (EBITDA) remained solid at CHF 397.7 million (-5.7% in reporting currency, with a margin of 26.6%, -0.9% at constant currencies)
  • Earnings before interest and tax (EBIT) increased to CHF 243.9 million (+65.7% in reporting currency, +82.7% at constant currencies)
  • Group net profit amounted to CHF 185.0 million (2021: CHF 73.5 million)


Jos Dijsselhof, CEO SIX: "Despite challenging market conditions, we have delivered a solid result. It is paramount for an international infrastructure operator like ourselves that our customers and all market participants can always rely on us. We continuously invest in new and improved services, as well as in our infrastructure and security. We shape the Swiss and Spanish capital markets for the future and make them the go-to markets for customers and clients around the globe.”

2022 Business Highlights

The diversified business model of SIX once again demonstrated its worth. SIX grew its operating income in the Banking Services business unit by 6.0% in reporting currency and by 6.8% in constant currencies. The operating income in the Financial Information business unit also grew, by 1.1% in reporting currency and 4.3% at constant currencies. Investments into these business units over the past three years have paid off and largely compensated for the declines in the Exchanges and Securities Services business units of SIX as a result of unfavourable market conditions.

SIX successfully launched new products in all business units, and pushed the strategic expansion into ESG markets and digital assets. In the Financial Information business unit, SIX expanded its ESG data and services offering as part of the EU Sustainable Finance Action Plan. With a series of new offerings on SIX Digital Exchange (SDX), SIX has prepared the foundation for the future of financial market infrastructures and services based on distributed ledger technology (DLT).  

In the past year, SIX finalized the acquisition of one of the the leading European trade repository REGIS-TR and expanded numerous services in its international custody business.

SIX continued to build on its growth strategy, focusing on increasing volumes on its infrastructures and expanding its international reach. SIX welcomed a total of 14 new companies on SIX Swiss Exchange, including nine GDR listings and the first listing in the “Sparks” SME-segment. In Spain, BME welcomed a total of 18 new companies, thereof 15 in the "BME Growth“ segment, one in “Latibex” and two in the main market. The global presence of SIX in the custody markets was strengthened with an office opening in Singapore.

Further milestone projects included the expansion of the CONNEXOR reference data platform into Spanish markets, the consolidation of market data feeds and SWIFT systems in both home markets, as well as the settlement and custody of Swiss securities now possible via the Spanish central securities depository Iberclear.

Company Wide

  • Integration of BME well progressed
  • Further progress in Group-wide digital asset strategy
  • Launch of sustainability strategy, committing to Net Zero by 2050

Exchanges

  • Four IPOs at SIX Swiss Exchange 
  • Sparks SME segment recorded its first listing
  • Launch of China-Switzerland Stock Connect with nine GDR listings
  • 18 companies listed their shares through IPOs in Spain
  • Expansion of Connexor to Spanish market
  • SDX with first trading of digital bonds (SIX, UBS) and launch of SDX Web3 Services

Securities Services

  • Successful closing of full Regis-TR acquisition
  • Expansion of International Custody business to Spain and Singapore
  • Introduction of Triparty Collateral Management Solution
  • Partnership with LMAX to launch cash-settled, centrally cleared crypto-asset futures

Financial Information

  • Launch of several ESG regulatory risk data services
  • Placement of first creation order on COSMOS, the ETF creation and redemption platform from SIX Ultumus
  • Launch of Sanctioned Securities Monitoring Services for ETFs
  • Introduction of data offering for cryptocurrencies with CryptoCompare and SDX

Banking Services

  • Successful replacement of paper payment slips by Swiss QR-bill
  • Go-live of Secure Swiss Finance Network
  • Increase in debit card, ATM and eBill transaction volumes
  • Implementation of NFC@Bancomat

EBIT Increase

Earnings before interest and tax (EBIT) increased by 65.7% to CHF 243.9 million. This increase compared to the previous year was mainly due to a one-off effect in 2021 related to the stake of SIX in Worldline. In 2021, an impairment resulting from the announced sale of Worldline’s Terminals, Solutions & Services (TSS) business negatively affected the share of profit or loss of associates and joint ventures of SIX. Share of profit or loss of associates and joint ventures in 2022 amounted to CHF 21.6 million (2021: CHF –102.1 million) and was also mainly related to the stake of SIX in Worldline. Group net profit amounted to CHF 185.0 million (2021: CHF 73.5 million).

Realignment of Legal Structure

SIX realigned its legal structure for further growth in the international capital market infrastructure business. The consolidation of the three business units Exchanges, Securities Services, and Financial Information in the newly formed SIX Exchange Group Ltd is effective as per 1 January 2023. This realignment has no impact on the governance or management of SIX.

Dividend

For 2022, in accordance with the SIX Group dividend policy, the Board of Directors recommends that the Annual General Meeting approve an ordinary dividend of CHF 5.10 per share, which equates an increase of 7.4% compared to the previous year (prior year: CHF 4.7).

Financial and Business Outlook      

Despite a challenging 2022 and external headwinds, SIX remains committed to its growth strategy. SIX expects a revenue increase of > 4% p.a. in the medium term, driven by dedicated initiatives such as SDX and digital assets, revenue synergies from the BME acquisition, and growth from the Financial Information business unit.

Cost efficiency remains a priority for SIX. An optimized cost base will be achieved by leveraging the largely fixed cost nature of the business, cost synergies from the BME acquisition, and other targeted cost measures. Profitability is expected to increase on the back of increasing revenues and an optimized cost base. 

SIX will continue to diversify its product portfolio, support organic growth and innovation, and also explore inorganic growth opportunities while maintaining competitive prices and delivering attractive returns to its shareholders.

Download the Annual Report

The publication provides a full report on the performance of the business units of SIX and outlines the ongoing efforts of SIX in providing the financial sector with innovative products and services.

Key Figures of SIX

   
CHF million 2022 2021 Change in %
Income statement      
Total operating income
    Total operating income at constant currencies1		 1’494.1
1’494.1		 1’498.3
1’463.7		 -0.3%
2.1%
Total operating expenses
    Total operating expenses at constant currencies1		 -1’096.4
-1’096.4		 -1’076.6
-1’062.6		 1.8%
3.2%
Earnings before interest, tax, depreciation and amortization (EBITDA)
    EBITDA at constant currencies1		 397.7
397.7		 421.7
401.1		 -5.7%
-0.9%
Depreciation, amortization and impairment -177.5 -173.6 2.2%
Net financial result 2.1 1.3 62.7%
Share of profit or loss of associates and joint ventures 21.6 -102.1 n/a
Earnings before interest and tax (EBIT)
    EBIT at constant currencies1		 243.9
243.9		 147.2
133.5		 65.7%
82.7%
Net interest and tax expenses -59.0 -73.7 -20.0%
Group net profit
    Group net profit at constant currencies1		 185.0
185.0		 73.5
62.3		 151.5%
197.0%
Cash flow statement 2022 2021 Change in %
Cash flow from operating activities -2’119.4 375.8 n/a
Cash flow from investing activities -150.8 -154.4 -2.3%
Cash flow from financing activities -129.0 184.5 n/a
       
Balance sheet as at 31/12     Change in %
Total assets 17’171.7 17’983.4 -4.5%
Total liabilities 12’139.2 12’771.0 -4.9%
Total equity 5’032.5 5’212.3 -3.5%
Net debt to EBITDA2 1.75 1.57 0.17
Equity ratio (average)3 69.2% 71.6% -2.4 pp
Return on equity (average)4 3.6% 1.4% 2.3 pp
       
Shareholders' key figures     Change in %
Earnings per share (in CHF) 9.80 3.91 150.7%
Ordinary dividend paid per share (in CHF) 5.10 4.75 7.4%
Payout ratio (adjusted)5 60% 53% 7 pp
       
Operating key figures     Change in %
Workforce (full-time equivalents, in number) 3’910.5 3’685.1 6.1%
Workforce (headcount, in number) 4’044 3’826 5.7%
Swiss stock exchange trading turnover (in CHF billion) 1’208.1 1’281.6 -5.7%
Spanish stock exchange trading turnover (Equities only, in EUR billion) 362.5 379.5 -4.5%
Market share of Swiss Equities 67.8% 75.6% -7.8 pp
Market share of Spanish Equities 59.3% 62.5% -3.2 pp
Swiss deposit volume (average, in CHF billion) 3’701.9 4’079.7 -9.3%
Spanish deposit volume (average, in EUR billion) 2’508.2 2’494.2 0.6%
Number of SIC transactions (in 1,000) 943’807 893’533 5.6%
Number of delivered financial instruments (business unit Financial Information, in million) 1’918 1’788 7.3%

1  Prior year’s figures are translated with the annual average exchange rates for 2022 (constant foreign exchange).

2 Net debt to EBITDA = net debt / adjusted EBITDA previous 12 months

3 Equity ratio = average equity previous 12 months / (average adjusted liabilities previous 12 months + average equity previous 12 months).
  The adjustments of the liabilities include the positions "payables from clearing & settlement" and "forwards from clearing & settlement"".

4 Return on equity = profit previous 12 months / average equity previous 12 months.

5 According to the dividend policy, the dividend distribution is based on the reported Group net profit without any effects in the context of participation in Worldline.

Links to Business Unit Performances

Any questions?

Please do not hesitate to contact Jürg Schneider.

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About SIX
SIX provides and operates stable and efficient infrastructure for the Swiss and Spanish financial centers, thus ensuring access to the capital markets and the flow of information and money between financial market players. As a global provider of financial information, SIX delivers high-quality reference, pricing, corporate actions, and ESG data and provides regulatory services and indices to clients around the world. The company is owned by its users (more than 120 banks) with a workforce of 4,160 employees and a presence in 19 countries.
www.six-group.com

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