Dubai Financial Market (dfm) - Pjsc · DFM:DFM
Dubai Financial Market (dfm) - Pjsc — Dubai Financial Market — Q1 2014 Earnings Presentation
33 slides from Dubai Financial Market (dfm) - Pjsc's earnings presentation, 2014
Slide 1: Dubai Financial Market Investor Presentation Q1 2014
Dubai Financial Market Investor Presentation Q1, 2014
Slide 2: Contents
i MENASA Region : Macroeconomics ………………………. 1 Dubai : Middle East’s Financial Hub ………………………. 5 UAE Capital Markets : DFM / ND / ADX ………………………. 9 Two Exchanges, One Market : DFM & ND …………………….... 14 Corporate Strategy : Going Forward …………………….... 24 www.dfm.ae
Slide 3: The Region – MENASA / GCC / UAE: An Economic Powerhouse
THE REGION – MENASA / GCC/ UAE AN ECONOMIC POWERHOUSE
Slide 4: MENASA Region: Solid Economic Fundamentals - Promising Growth
2 MENASA REGION : SOLID ECONOMIC FUNDAMENTALS -PROMISING GROWTH Population Projections Oil Reserves and Production (% of Global Total) 1.7% 2,250 29% of Global Population Millions 1.6% 2,200 1.6% 2,150 MENASA region 1.6% 2,100 is emerging as a 1.6% 2,050 59% 1.6% 2,000 powerful 45% 33% 1.5% 1,950 29
Slide 5: GCC Region: Liquidity on the Back of High Oil Prices
3 GCC REGION : LIQUIDITY ON THE BACK OF HIGH OIL PRICES – KEY EMERGING MARKET The UAE, the second biggest Arab economy, is set to record 4% growth in GDP in 2013, led by a focus on adopting industrial policies that will drive sustainable development across the UAE. -IMF 2013 Forecast GCC – GDP Proje
Slide 6: UAE: Growth Prospects
4 UAE: GROWTH PROSPECTS Oil / Gas as % of GDP (2012) • Recovery in oil prices Key Contributors BAHRAIN 21% to Growth • Strong growth in the non-hydrocarbon sector OMAN 41% • UAE’s service driven economy benefitting from the global trade SAUDI ARABIA 41% • USD 50 billion worth of infrastructural proj
Slide 7: Dubai: The Financial Hub of Middle East
DUBAI THE FINANCIAL HUB OF MIDDLE EAST
Slide 8: Dubai: Vision & Economic Strengths
6 DUBAI: VISION & ECONOMIC STRENGTHS “Our vision is clear, our goals are Dubai GDP Share Breakdown by obvious, our strengths are great, our will Economic Sectors – 2012 is strong and we are ready. We want Others Government 5.6% Dubai to be a global center of Transportation Sector Financial 5.2% Sect
Slide 9: Dubai: Recent Events
7 DUBAI: RECENT EVENTS • Organizational restructuring of government departments & related entities • Successful debt restructuring across all sectors with zero defaults • GDP is projected to grow at 4%+ and above going forward, as per IMF, way above the average GDP growth of western counterparts See
Slide 10: Dubai: Growth Prospects
8 DUBAI: GROWTH PROSPECTS Globally fast growing industries Financial with a strong position in Dubai services Tourism Trade Oil and gas Professional Globally faster services growing sectors Communication Transportation Future global and storage Manufacturing growth Average global 2010– 2015 Construc
Slide 11: Capital Markets: United Arab Emirates
CAPITAL MARKETS UNITED ARAB EMIRATES
Slide 12: Capital Markets: Key Exchanges in the Region
10 CAPITAL MARKETS: KEY EXCHANGES IN THE REGION Istanbul Stock Tunis Stock Exchange Algiers Stock Exchange Casablanca Exchange Damascus Stock Stock Exchange Exchange Beirut Stock Exchange Iraq Stock Exchange Palestine Stock Exchange Tehran Stock Amman Stock Kuwait Stock Exchange Libya Stock Exchange
Slide 13: Market Capitalization: Liquidity Review
11 MARKET CAPITALIZATION LIQUIDITY REVIEW END-OF-PERIOD MARKET CAPITALIZATION (2003 –Q1, 2014 ) All figures in AED Mn 507,474 25% growth in market capitalization in Q1,2014 420,474 326,784 319,156 259,729 239,183 213,377 199,086 183,837 180,093 136,707 55,425 2003 2004 2005 2006 2007 2008 2009 2010
Slide 14: Trade Values: DFM Performance
12 TRADE VALUES : DFM PERFORMANCE TRADED VALUE - DFM (2003 –Q1,2014 ) DFM All figures in AED Mn exchange has seen a 405,161 379,410 surge in trading driven 347,980 by improved 305,202 domestic economic environment and enhanced banking system 173,508 159,886 liquidity. The YTD trading 110,168 volumes
Slide 15: Market Velocity: DFM Performance
13 MARKET VELOCITY DFM PERFORMANCE VELOCITY (2003 –Q1, 2014) 138.3% 127.6% 109.0% 96.4% 81.3% 74.8% 61.6% 37.3% 35.0% 26.5% 17.8% 7.2% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1, 2014 Source : DFM Analytics www.dfm.ae
Slide 16: DFM / Nasdaq Dubai: Two Exchanges, One Market
DFM / NASDAQ DUBAI TWO EXCHANGES, ONE MARKET
Slide 17: UAE Markets: Regulations & Ownership
15 UAE MARKETS : REGULATIONS & OWNERSHIP Regulatory SCA DFSA Authorities (UAE Regulations) (International Regulations) ADX DFM NASDAQ Dubai Stock Exchanges Government of Ownership ABU DHABI 33.33% Structure 100% 79.62% 66.67% 20.38% Public Stake www.dfm.ae
Slide 18: DFM: General Index Performance
16 DFM : GENERAL INDEX PERFORMANCE AS OF 2013 32.1% Index growth in 4451.0 Q1, 2014 as (32.1% +) compared to 2013 2013 4600 2014 4100 3600 3100 2600 2100 1600 02/01 16/01 30/01 13/02 27/02 13/03 27/03 10/04 24/04 08/05 22/05 05/06 19/06 03/07 17/07 31/07 14/08 28/08 11/09 25/09 09/10 23/10 06/11 20/
Slide 19: DFM: Trading Profiles, Retail vs. Institutional Mix
17 DFM : TRADING PROFILES RETAIL VS. INSTITUTIONAL MIX Q1, 2014 – TRADING ACTIVITY PATTERN AVERAGE RETAIL TRADING = 73.4% Trading Activity : Client type Mix AVERAGE INSTITUTIONAL TRADING = 26.6 % TRADING ACTIVITY BY CATEGORY Q1, 2014 has been a growth RETAIL INSTITUTIONAL quarter with institutional
Slide 20: DFM: Trading Activity, Local vs. Foreign Investment
18 DFM : TRADING ACTIVITY LOCAL VS. FOREIGN INVESTMENT UAE Non-UAE UAE VS. 30% 31% 37% 40% 41% 43% 44% 46% 48% Non UAE Trading Activity 70% 69% 63% 60% 59% 57% 56% 54% 52% 2006 2007 2008 2009 2010 2011 2012 2013 Q1,2014 5% 11% 12% 13% 15% 15% 12% 20% 18% Non UAE 17% Trading 21% 22% 22% 25% 12% 23% 2
Slide 21: DFM: Trade Matrices, Sector Mix
19 DFM : TRADE MATRICES SECTOR MIX Transportation, Telecom, 1.36% 4.97% Trade Activity – Financial By Sector Services, Q1, 2014 16.75% Banking, 22.78% Real Estate, 49.94% Insurance, 2.61% Others, 0.02% Services, 1.58% * Others includes Consumer Staples and Industrial Sectors Source : DFM / ND Analyt
Slide 22: DFM: Ownership, Share Ownership Ratios
20 DFM : OWNERSHIP SHARE OWNERSHIP RATIOS BY TYPE OF INVESTOR BY NATIONALITY ARAB, 4% GCC, 5% OTHERS, 9% Distribution RETAIL, of Share 30.4% Ownership INSTITUTIONAL, Q1, 2014 69.6% UAE, 82% FOREIGN OWNERSHIP AS % OF MARKET CAPITALIZATION 18% 16% 13% 12% 12% 11% 12% 10% 8% 2006 2007 2008 2009 2010 20
Slide 23: DFM: Market Activity, DFM Share Price
21 DFM : MARKET ACTIVITY DFM SHARE PRICE DFM Share Price Movement AED AED 3.42 Q1, 2014 4 3.5 3 2.5 Trade 2 Volume 1.5 YTD 2010 1 0.5 0 Source : Reuters / DFM / ND Analytics www.dfm.ae
Slide 24: DFM: Revenue Mix
22 DFM : REVENUE MIX Revenue Breakdown 4.8% 6.3% 5.7% 11.3% 2008-2013 20.8% 10.0% 18.4% 26.4% 32.0% 28.5% 21.0% 30.6% 84.3% 75.3% 63.2% 60.2% 58.2% 43.0% 2008 2009 2010 2011 2012 2013 Trading Fee & Commisions Investment Income Other Income Source : Reuters / DFM / ND Analytics www.dfm.ae
Slide 25: DFM: Investor-Centric Platform for Local & International Investors
23 DFM : INVESTOR-CENTRIC ATTRACTIVE PLATFORM FOR LOCAL & INTERNATIONAL INVESTORS • Easy accessibility • No income and capital gains tax • Non-restricted repatriation of capital • Minimal foreign exchange risk • Foreign ownership allowed for most listed companies • Diverse base of listed companies •
Slide 26: Corporate Strategy: DFM – Nasdaq Dubai
CORPORATE STRATEGY DFM – NASDAQ DUBAI
Slide 27: Strategic Initiatives: Addressing Future Growth
25 STRATEGIC INITIATIVES ADDRESSING FUTURE GROWTH • Upgrade to MSCI Emerging Market Status • G30 Compliance and addressing the gaps • Organizational restructuring and monetization of financial services • Initiating investor –centric services to increase liquidity and trading activities post merger •
Slide 28: Strategic Initiatives: MSCI Upgrade
26 STRATEGIC INITIATIVES MSCI UPGRADE CRITERIA Emerging DFM / ND A. ECONOMIC DEVELOPMENT Key criteria's A.1 Sustainability of economic development No requirement Strong economic for Emerging fundamentals with market status expected GDP growth of 4.5% for 2013-14 B. SIZE AND LIQUIDITY REQUIREMENTS B.
Slide 29: Strategic Initiatives: G-30 Compliance
27 STRATEGIC INITIATIVES G-30 COMPLIANCE UNCHANGED CHANGED Delivery Vs. 1. T+2 settlement 1. Permitting Local Custodians ability to reject cash and securities settlement of sell Payment : cycle; trades back to executing Broker for settlement if Local Custodians do not receive Implementation 2. Pre-v
Slide 30: Strategic Initiatives: Organizational Restructuring
28 STRATEGIC INITIATIVES ORGANIZATIONAL RESTRUCTURING DFM New organizational structure Development Financial Services Business DSX ND CSD EXCHANGES • e-Reports & • iVESTOR • Web • Trading Enhancements e-Services Cards Advertizing • Margin Trading • DVP • Dividend • Online • Equity Swaps • SBL Distri
Slide 31: Strategic Initiatives: Pioneering IPO Study
29 STRATEGIC INITIATIVES PIONEERING IPO STUDY 2009 Research over 500 DFM companies in has the UAE commissioned 2011 Targeted IPO Independent Research over marketing Research 500 companies campaign to Consultants in the region, attract issuers for CIS, and Africa through out the intensive period IPO
Slide 32: Strategic Initiatives: Robust Environment for Future Listings
30 STRATEGIC INITIATIVES ROBUST ENVIRONMENT FOR FUTURE LISTINGS In-depth market intelligence and value added services Robust and Investor and reliable trading consumer environment visibility One of the most In-depth IR and liquid markets in trading analysis the G.C.C. Free accessibility of internati
Slide 33: Contacts
ii CONTACTS : Racha Al Chamut Areej Al Saeed Manager, Investor Relations Office Manager Executive Chairman's Office P.O.Box: 9700, Dubai, UAE P.O.Box: 9700, Dubai, UAE Tel: +971 4 305 5650 Tel: +971 4 305 5607 Fax: +971 4 331 4924 Fax: +971 4 331 4924 rchamut@dfm.ae aalsaeed@dfm.ae www.dfm.ae
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