Boursa Kuwait Securities Company (k.p.s.c) · KSE:BOURSA
Boursa Kuwait Securities Company (k.p.s.c) — Q3 2022 Earnings Presentation
36 slides from Boursa Kuwait Securities Company (k.p.s.c)'s earnings presentation, Nov 3, 2022
Slide 1: Analyst Conference Transcript cover letter
Q 139451 Guaygu BOURSA KUWAIT Date: 08 November 2022 To: Issuers and Development Services Department Dear Sirs, Subject: Analyst Conference Transcript — Q3 of FY2022 With reference to the above, and in line with Boursa Kuwait’s in adhering to Article (7-8-1/4) of the Boursa Kuwait Rulebook regarding
Slide 2: Analyst Conference Q3-2022
ANALYST CONFERENCE Q3-2022 ` Q3-2022 Nov 3rd, 2022 BOURSA KUWAIT Page 1 of 9
Slide 3: Boursa Kuwait Earnings Briefing - Participants
ANALYST CONFERENCE Q3-2022 Boursa Kuwait Securities Company (K.P.S.C.) Earnings Briefing Thursday, 3rd November 2022 Edited transcript of Boursa Kuwait Securities Company (K.P.S.C.) earnings conference call that took place on Thursday, 3rd November 2022 at 14:00 Kuwait time. Corporate participants:
Slide 4: Transcript: Introduction and business highlights
ANALYST CONFERENCE Q3-2022 Elena Sanchez Good afternoon, everyone. This is Elena Sanchez from EFG Hermes, and I would like to welcome you all to Boursa Kuwait’s Q3 2022 Earnings Webcast. We have with us from Boursa Kuwait the following speakers, Mr. Naim Azad Din, Chief Financial Officer, Miss Noura
Slide 5: Transcript: Market development and performance
ANALYST CONFERENCE Q3-2022 while the full market-wide tests are still scheduled to take place by the end of November. As many of you are aware, these development plans are joint projects that are contingent on the final approvals of the regulator and the readiness of all market participants. After t
Slide 6: Transcript: Financial perspective
ANALYST CONFERENCE Q3-2022 Mohammed Naim Azad Din Thank you, Noura. Good afternoon, everyone. I hope all is well. I am delighted to have this opportunity to present to our stakeholders the performance we have collectively achieved to date from financial perspective. This slide encapsulates our succe
Slide 7: Transcript: Financial highlights
ANALYST CONFERENCE Q3-2022 This slide presents the year-to-date trend of operating revenue, operating expenses, operating profit and net profit to parent company. Over the comparative periods, positive growth trends continued as can be seen on the selected financial highlights as follows. Operating
Slide 8: Transcript: Revenue and operating expenses
ANALYST CONFERENCE Q3-2022 Additionally, the number of foreign trade confirmations also recorded an increase of 79.37% to 669,869 from 373,458 resulted in an increase of trade confirmation revenue by 81.78% to KD 3.38 million. Central depository services also recorded a commendable increase of 34.02
Slide 9: Transcript: Questions and answers
ANALYST CONFERENCE Q3-2022 Noura Al Abdulkareem I can take on the first question. The first question is, what do you think is driving the increasing participation of foreign and institutional investors, which has increased the traded value at the premier market? The increase in the traded value with
Slide 10: Transcript: Questions and answers continued
ANALYST CONFERENCE Q3-2022 also private companies that are also being prepared for an IPO, but again, no dates have been set, or specific timeframes. Can you discuss the initiatives to increase data income? These are still pending, so I cannot disclose any of the information in regard to data income
Slide 11: 3Q FY2022 Earnings Briefing
3Q FY2022 Earnings Briefing Naim Azad Din, Chief Financial Officer Noura Al Abdulkareem, Head of Markets 3 November 2022
Slide 12: Disclaimer
Disclaimer This presentation is not an offer or an invitation to subscribe to or purchase any securities. Boursa Kuwait Securities Company (K.S.C.P.) does not provide the validity of the information in this presentation to buy or sell any securities. You must make your own independent investigation
Slide 13: Agenda
Agenda No. Segment Slide No. 1. Business Updates 4 2. 3Q 2022 Financial Highlights and Performance 11 3. Q&A 21 3
Slide 14: Business Updates
3Q FY2022 Business Updates Noura Al Abdulkareem, Head of Markets
Slide 15: Market Developments
MARKET DEVELOPMENTS Diversifying product offerings, increasing accessibility and transparency of our Market while continuing improving infrastructures. MD1 MD2 MD3.1 MD3.2 MD4 • Ticks & Price • Market • REITs • Netting • Derivatives CCP Limits Segmentation • Tradable Rights • Intentional • Derivativ
Slide 16: Market Performance
MARKET PERFORMANCE Trading Volumes -21.9% Trading Values (KWD) +2.6% No. of Trades +2.9% 18,000 3,100 675,000 Millions Millions 17,009 3,092 16,000 3,080 670,000 14,000 668,723 13,280 3,060 665,000 12,000 3,040 660,000 10,000 8,000 3,020 655,000 3,015 6,000 3,000 650,000 649,793 4,000 2,980 645,000
Slide 17: Market Splits (Premier vs Main)
MARKET SPLITS (Premier vs Main) Traded Values (%) Volumes (%) Market Cap (KWD) +13.4% 100% 100% 50 Billions 90% 90% 45 29% 35% 80% 80% 40 70% 58% 70% 35 75% 60% 60% 30 36.52 +20.5% 50% 50% 25 30.31 40% 40% 20 71% 65% 30% 30% 15 20% 42% 20% 10 25% -8.4% 10% 10% 5 9.76 8.94 0% 0% 0 Q3 2021 Q3 2022 Q3
Slide 18: Index Performance
INDEX PERFORMANCE YTD Performance Q3 2022 Performance 9,500 9,500 9,000 9,000 8,500 8,500 8,000 4.07% 8,000 -3.56% 7,500 7,500 7,000 0.89% 7,000 -4.09% 6,500 6,500 6,000 6,000 -9.77% -6.49% 5,500 5,500 -9.13% -6.03% 5,000 5,000 Premier Main All-Share BK Main 50 Premier Main All-Share BK Main 50 8
Slide 19: Investor Turnover
INVESTOR TURNOVER Breakdown of Value Turnover by Investor Geography Breakdown of Value Turnover by Investor Type Q3 2021 Q3 2022 Q3 2021 Q3 2022 13% 20% 37% 47% 53% 63% 80% 87% Local Int'l (Inc GCC) Local Int'l (Inc GCC) Retail Institutional Retail Institutional International Investors +52% Institut
Slide 20: Active Accounts
ACTIVE ACCOUNTS 19,700 100% 5.8% 5.4% 19,597 90% 19,600 80% 19,500 70% 60% 19,400 50% 94.2% 94.6% 40% 19,300 19,223 30% 19,200 20% 10% 19,100 0% Q3 2021 Q3 2022 19,000 Q3 2021 Q3 2021 Retail Instit Active Accounts +2% Active Accounts are those that have executed one trade at least in the last six mo
Slide 21: Financial Highlights and Performance
3Q FY2022 Financial Highlights and Performance Naim Azad Din, Chief Financial Officer
Slide 22: Financial Highlights and Performance
Financial Highlights and Performance Solid performance driven by trade-related income streams and improving operating cost structure OPERATING REVENUE OPERATING OPERATINGEXPENSES EXPENSES OPERATING PROFIT OPERATING PROFIT NP ATTRI. TO EQ. HOLDERS OF PARENT • KWD (12,673,036) • KWD 18,346,463 26,435,
Slide 23: Quarterly Trend
Quarterly Trend Resilient performance underpinned value creation Operating Revenue ('000) Operating Expenses ('000) YoY QoQ YoY QoQ -17.0% -18.6% 3,644 -3.0% +9.7% 9,642 8,849 8,790 2,999 7,294 2,474 2,516 8,003 2,441 Q3 FY2021 Q4 FY2021 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q3 FY2021 Q4 FY2021 Q1 FY2022 Q2
Slide 24: YTD Trend
YTD Trend Continued realization of successful strategy implementation Operating Revenue ('000) Operating Expenses ('000) YoY +19.2% 9,029 YoY -17.7% 22,170 26,435 7,431 9M FY2021 9M FY2022 9M FY2021 9M FY2022 Operating Profit ('000) NP Attri. to Eq. Holders of Parent ('000) YoY +44.6% YoY 19,004 +29
Slide 25: Financial Position Summary
Financial Position Summary Strengthened financial position through assets growth and lower liabilities Total Assets ('000) YoY +8.4% 105,802 114,704 9M FY2021 9M FY2022 Total Liabilities ('000) Total Shareholders Equity ('000) YoY +9.8% 94,695 11,107 104,022 YoY -3.8% 10,683 9M FY2021 9M FY2022 9M F
Slide 26: 3Q FY2022 Operating Revenue
3Q FY2022 Operating Revenue Amidst heightened uncertainties, some revenue streams remain resilient Operating Revenue ('000) Subscription Fee Trading Commission Clearing Shareholders Register Central Depository Settlement Miscellaneous Total Q3 FY2022 1,957 24.45% 1,977 24.71% 1,241 15.51% 714 8.93%
Slide 27: 9M FY2022 Operating Revenue
9M FY2022 Operating Revenue Solid performance driven by trade-related income streams Operating Revenue ('000) Subscription Fee Trading Commission Clearing Shareholders Register Central Depository Settlement Miscellaneous Total 9M FY2022 5,823 22.03% 7,837 29.65% 3,652 13.81% 2,399 9.07% 3,054 11.55%
Slide 28: 3Q FY2022 Operating Expenses
3Q FY2022 Operating Expenses Streamlining of Staff costs contributed to improving operating cost structure Operating Expenses ('000) Staff IT Depn & Amortization Building Consultancy Fees CMA Commission Impairment Others Total Q3 FY2022 1,371 56.15% 298 12.19% 192 7.86% 74 3.02% 166 6.78% 62 2.53% 0
Slide 29: 9M FY2022 Operating Expenses
9M FY2022 Operating Expenses Streamlining of Staff costs contributed to improving operating cost structure Operating Expenses ('000) Staff IT Depn & Amortization Building Consultancy Fees CMA Commission Impairment Others Total 9M FY2022 4,286 57.67% 875 11.78% 618 8.32% 216 2.91% 370 4.97% 249 3.35%
Slide 30: Key Indicators
Key Indicators High Operating Margin continued to support growth 3Q FY2021 4Q FY2021 1Q FY2022 2Q FY2022 3Q FY2022 Operating Revenue ('000) 7,294 8,849 8,790 9,642 8,003 Operating Expenses ('000) (2,999) (3,644) (2,474) (2,516) (2,441) Cost to Income Ratio 41.11% 41.18% 28.15% 26.09% 30.50% Operatin
Slide 31: Q&A
Q&A 21
Slide 32: Boursa Kuwait Share Information
BOURSA KUWAIT SHARE INFORMATION ▪ Legal Name Boursa Kuwait Securities Company K.P.S.C ▪ Date Established 21 April 2014 ▪ Regulated By Kuwait’s Capital Markets Authority (CMA) ▪ Listing Date 14 September 2020 ▪ Exchange Ticker BOURSA ▪ Code 827 ▪ Bloomberg Ticker BOURSA KK ▪ Thomson Reuters Ticker BO
Slide 33: Analyst Coverage
ANALYST COVERAGE Research House Analysts Date Target Price (KWD) Rating Elena Sanchez, CFA EFG HERMES 12 October 2022 3.07 BUY Ahmed El-Shazly Jaap Meijer, MBA, CFA Arqaam Capital 16 August 2022 2.84 BUY Janany Vamadeva 23
Slide 34: Awards
AWARDS Most Sustainable Company in the Financial Sustainable Stock Exchange of the Year Sustainable Stock Exchange of the Year - MENA Services Industry for 2022 Middle East 2022 2021 Boursa Kuwait was awarded Sustainable Stock Boursa Kuwait was awarded Most Sustainable Boursa Kuwait was awarded Sust
Slide 35: Awards
AWARDS Second Place in the Best Annual Report – Print Category for Small Cap Companies – Middle Most Improved Company 2018 East 2021 Boursa Kuwait’s 2020 Annual Report was voted Boursa Kuwait was voted “Most Improved second best annual report in the print category Company” by the Banker Middle for S
Slide 36: Contact Information
CONTACT INFORMATION Tel: +965 2299 2273 Email: ir@boursakuwait.com.kw Website: www.boursakuwait.com.kw
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