Bolsa De Comercio De Santiago · BCS:BOLSASTGO
Bolsa De Comercio De Santiago — Santiago Stock Exchange (SSE) — Investor Presentation (April 2015)
64 slides from Bolsa De Comercio De Santiago's investor presentation, Apr 13, 2015
Slide 1: Santiago Stock Exchange (SSE) Chilean Stock Market 2015
Santiago Stock Exchange (SSE) Chilean Stock Market 2015
Slide 2: Agenda
Agenda 1. Chile: a place to invest 2. Chilean Stock Market 3. MILA 4. Santiago Stock Exchange 5. Projects
Slide 3: Chile: A Place to Invest
CHILE: A PLACE TO INVEST Population: 17.77 MM* GDP: USD 277,199 MM* GDP per capita (PPP): USD 21,911 GDP growth: 1.9% Unemployment: 6.2% Inflation: 4.6% Sovereign Rating: AA-; A+ Trade Balance: USD 8,560 MM Exports: USD 76,648 MM Imports: USD 68,089 MM *Data as of December 2013 Source: Central Bank,
Slide 4: Chile: GDP by Sectors
CHILE: A PLACE TO INVEST CHILE: GDP BY SECTORS Communications Restorants and hotels Electricity, gas and water 2% 2% Fishing 3% 1% Agriculture and forestry Corporate Services 3% 16% Transport 4% Public Administration 5% Financial Services 5% Mining 12% Housing Services 6% Personal Services 12% Const
Slide 5: GDP Variation
CHILE: A PLACE TO INVEST Chilean GDP shows a steady growth since 2003, except on 2009 for macroeconomic reasons. It maintains above regional and global averages. GDP VARIATION 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20
Slide 6: GDP per capita variation
CHILE: A PLACE TO INVEST OCDE - GDP per capita variation During the last 20 years, our country 350% has shown a superior GPD per 300% 305% capita than regional and worldwide 250% 200% averages. 150% 120% 100% 50% 0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 7: Inflation
CHILE: A PLACE TO INVEST INFLATION 30 25 20 % Inflation 15 10 5 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -5 Year Chile SudAmerica + Mexico MILA OCDE Source: World Bank, DatosMacro.com
Slide 8: Unemployment
CHILE: A PLACE TO INVEST Unemployment was stable between bands of 6 and 10%. It shows to be in line with other developed countries. The current percentage is 6.15%. UNEMPLOYMENT 12 10 % Unemployment 8 6 4 2 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2
Slide 9: Agenda
Agenda 1. Chile: a place to invest 2. Chilean Stock Market 3. MILA 4. Santiago Stock Exchange 5. Projects
Slide 10: Market Participants: Issuers
CHILEAN STOCK MARKET MARKET PARTICIPANTS 1. ISSUERS • Chilean Central Bank • General Treasury of the Republic • Banks and Financial Institutions • Corporate Bodies
Slide 11: Market Participants: Issuers
CHILEAN STOCK MARKET MARKET PARTICIPANTS 1. ISSUERS Domestic Equities: 230 Foreign Equities: 79 Foreign Equities MILA: 463 Foreign ETF: 102 Foreign Open Funds: 203 Fixed Income: 147 Money Market: 57 Local Investment Funds: 125 Local Mutual Funds: 9 Data as of December 31, 2014 Most traded stocks 201
Slide 12: Market Participants: Brokers
CHILEAN STOCK MARKET MARKET PARTICIPANTS 2. BROKERS: Requirements: • To own a Santiago Stock Exchange share • Have a minimum estate and established guarantees • Be accepted by the Board of Directors of Santiago Stock Exchange • Be regulated by the exchange and the Chilean Securities and Insurance Su
Slide 13: Brokers Market Share: Equity
CHILEAN STOCK MARKET MARKET PARTICIPANTS 2. BROKERS MARKET SHARE SCOTIA SECURITY 2.7% 3.8% OTHERS 18.8% EUROAMER 3.8% MBI 4.4% BANCHILE MERRILL 15.1% 4.5% EQUITY BCI 6.2% LARRA IM TRUST 12.2% 7.1% SANTANDER 9.8% BTG Source: Santiago Stock Exchange 11.5%
Slide 14: Brokers Market Share: Fixed Income
CHILEAN STOCK MARKET MARKET PARTICIPANTS 2. BROKERS MARKET SHARE PENTA LARRA 2.6% 2.3% ITAU CHILE 3.2% BANESTADO 19.9% IM TRUST 3.6% CORPCAP 3.8% BCI FIXED 6.0% INCOME BBVA 15.9% BANCHILE 9.4% OTHERS 10.0% BICE SANTANDER 12.0% 11.2% Source: Santiago Stock Exchange
Slide 15: Brokers Market Share: Money Market
CHILEAN STOCK MARKET MARKET PARTICIPANTS LARRA EUROAMER 2. BROKERS MARKET SHARE 2.5% 1.7% SCOTIA 2.8% CORPCAP 3.1% BANESTADO 29.2% ITAU CHILE 3.9% OTHERS 4.7% MONEY MARKET SANTANDER 5.3% BBVA 17.7% BICE 6.7% BCI 10.1% BANCHILE 12.2% Source: Santiago Stock Exchange
Slide 16: Market Participants: Investors
CHILEAN STOCK MARKET MARKET PARTICIPANTS 3. INVESTORS Institutional Investors: • Pension Funds (AFP) • Mutual Funds • Investment Funds • Insurance Companies • Banks Non-Institutional Investors: natural and legal persons, local and foreigners.
Slide 17: Investors: Investment Stock
CHILEAN STOCK MARKET MARKET PARTICIPANTS 3. INVESTORS: INVESTMENT STOCK Source: Chilean Pension Funds, Mutual Funds, Insurance Companies, Investment Funds. Pension Funds: Data as of October 2014. Mutual Funds and Insurance Companies: Data as of Decemeber 2013. Investment Funds: Data as of September
Slide 18: Market Participants: Regulators
CHILEAN STOCK MARKET MARKET PARTICIPANTS 4. REGULATORS Superintendence's • Chilean Securities and Insurance Supervisor (SVS) www.svs.cl • Superintendence of Pensions www.safp.cl • Superintendence of Banks and Financial Institutions www.sbif.cl
Slide 19: Market Infrastructure Companies
CHILEAN STOCK MARKET MARKET PARTICIPANTS 5. MARKET INFRASTRUCTURE COMPANIES Santiago Stock Exchange • Santiago Stock Exchange (SSE) www.bolsadesantiago.com Depositaries • Central Securities Depository (DCV) www.dcv.cl Clearing and Settlement • CCLV, Central Counterparty S.A. www.cclv.cl
Slide 20: Markets: Chile in the Region
CHILEAN STOCK MARKET MARKETS: CHILE IN THE REGION Fixed Income Equity Traded Equity New Market Cap Listed Traded Market Country Amounts 2014 Issues 2014 (US$) Companies Amounts 2014 Cap./GPD (US$) (US$) (US$) 6° 5° 5° 3° 6° 6° Argentina ($60 billion) (101 listed) ($5 billion) ($60 billion) ($0.02 bi
Slide 21: Total Traded Volume and Number of Trades 2014
CHILEAN STOCK MARKET CHILEAN MARKET: TOTAL TRADED VOLUME AND NUMBER OF TRADES 2014 Source: Santiago Stock Exchange *Considers on and off floor trades.
Slide 22: Market Daily Traded Amounts 2014
CHILEAN STOCK MARKET MARKET DAILY TRADED AMOUNTS 2014 Stocks Investment Fund 7% Quotas 0% Currency 0% Fixed Income 31% Stocks: US$ 110.19 Investment Fund Quotas: US$ 7.32 Currency: US$ 0.02 Money Market: US$ 980.15 Fix Income: US$ 494.15 Note: Figures expressed in MM US$ Money Market 62% Source: San
Slide 23: Equity Taxes
CHILEAN STOCK MARKET EQUITY TAXES Capital Gains: • High Liquidity Stocks or Stocks with Market Maker: 0% for domestic and foreign investors • Low Liquidity Stocks: Domestic Investors: Income Tax (0-35%)** and/or first category tax (25% or 27%)* Foreign Investors: 35% Dividends • Domestic Investors:
Slide 24: Debt Investment Taxes
CHILEAN STOCK MARKET DEBT INVESTMENT TAXES Modifications to Article 104 of the Chilean Income Tax Act introduced by the Single Funds Act (Ley Única de Fondos) • Expands eligible forms of acquisition and disposition of instruments • Eliminates operation load for issuers • Eliminates tax punishment fo
Slide 25: Equity Market Growth 2005-2014
CHILEAN STOCK MARKET EQUITY MARKET GROWTH 2005 – 2014 Source: Santiago Stock Exchange
Slide 26: Equity Market Growth 2002-2014
CHILEAN STOCK MARKET EQUITY MARKET GROWTH 2002 - 2014 2002 2014 Variation Traded Amounts (MM US$) 5.76 76.30 1224.11% Market Cap. (MM US$) 82.16 383.61 366.93% Market Cap. / GDP 70.00% 84.10% 20.14% Traded Amounts / Market Cap. 7.04% 19.89% 182.53% Price / Earnings 20.6 19.5 -5.34% Book Value 1.09 1
Slide 27: Institutional Market Share: Equity Market
CHILEAN STOCK MARKET INSTITUTIONAL MARKET SHARE: EQUITY MARKET Source: Santiago Stock Exchange *Considers buy + sell amounts
Slide 28: Investment Fund Quotas Market Growth 2005-2014
CHILEAN STOCK MARKET INVESTMENT FUND QUOTAS (IFQ) MARKET GROWTH 2005 – 2014 Source: Santiago Stock Exchange *Traded volume expressed in millions of dollars using the “Observed Dollar” exchange recorded at the last day of 2014
Slide 29: Fixed Income Instruments Market Growth 2004-2014
CHILEAN STOCK MARKET FIXED INCOME INSTRUMENTS (IRF) MARKET GROWTH 2004 – 2014 Source: Santiago Stock Exchange *Traded volume expressed in millions of dollars using the “Observed Dollar” exchange recorded at the last day of 2014
Slide 30: Institutional Market Share: Fixed Income
CHILEAN STOCK MARKET INSTITUTIONAL MARKET SHARE: FIXED INCOME Source: Santiago Stock Exchange *Considers buy + sell amounts
Slide 31: Capital Raised in Fixed Income IPOs 2005-2014
CHILEAN STOCK MARKET CAPITAL RAISED IN FIXED INCOME IPOs 2005 - 2014 Source: Santiago Stock Exchange
Slide 32: Trading Value by Type of Bonds 2014
CHILEAN STOCK MARKET TRADING VALUE BY TYPE OF BONDS (FIXED INCOME) 2014 LH: Letra Hipotecaria/Mortgage notes BE: Bonos Bancarios y Empresas/Bank and Corporate Bonds BT: Bonos del Banco Central y Tesorería en Pesos/ Central Bank and Treasury Bonds Source: Santiago Stock Exchange
Slide 33: Money Market Instruments Market Growth 2005-2014
CHILEAN STOCK MARKET MONEY MARKET INSTRUMENTS (IIF) MARKET GROWTH 2005 – 2014 Source: Santiago Stock Exchange *Traded volume expressed in millions of dollars using the “Observed Dollar” exchange recorded at the last day of 2014
Slide 34: Institutional Market Share: Money Market
CHILEAN STOCK MARKET INSTITUTIONAL MARKET SHARE: MONEY MARKET Source: Santiago Stock Exchange *Considers buy + sell amounts
Slide 35: Foreign Securities Growth 2006-2014
CHILEAN STOCK MARKET FOREIGN SECURITIES GROWTH 2006 – 2014 Source: Santiago Stock Exchange *Traded volume expressed in millions of dollars using the “Observed Dollar” exchange recorded at the last day of 2014
Slide 36: Indices
CHILEAN STOCK MARKET INDICES IPSA: Blue chip index (top 40 most traded stocks) IPSA: Selective Stock Price Index: The IPSA is an index of the 40 highest trading value stocks on SSE, calculated quarterly, and whose market capitalization is over US $200,000,000 and a free-float percentage of not less
Slide 37: Santiago Stock Exchange Stock Market Indices 2014
CHILEAN STOCK MARKET SANTIAGO STOCK EXCHANGE STOCK MARKET INDICES 2014 Source: Santiago Stock Exchange
Slide 38: Agenda
Agenda 1. Chile: a place to invest 2. Chilean Stock Market 3. MILA 4. Santiago Stock Exchange 5. Projects
Slide 39: Integrated Latin American Market - MILA
MILA INTEGRATED LATIN AMERICAN MARKET – MILA The Pacific Alliance´s Stock Market Chile, Colombia, Mexico and Peru Most promising economies in Latin America Rank of investment Integrated market In MILA you can find: • Investment opportunities on over 700 companies from four countries. • More th
Slide 40: MILA and the Pacific Alliance
MILA MILA AND THE PACIFIC ALLIANCE With Mexico´s incorporation to MILA last December 2014: Market capitalization increased to more than USD 1,075 billion The number of issuers increased over 40% MILA is integrated by all four countries from the Pacific Alliance, becoming the initiative´s financi
Slide 41: MILA in Numbers
MILA IN NUMBERS MARKET CAP AND TRADED VOLUMEN 2014 Peru Peru Colombia 1% 8% 10% Colombia 16% Chile 14% Market Traded Mexico Cap. 51% Volume Chile 25% Mexico 75% Source: Mila News, WFE, Santiago Stock Exchange: Information as of december 2014,.
Slide 42: MILA Indices Comparative 2014
MILA MILA INDICES COMPARATIVE 2014 Source: Santiago Stock Exchange, MILA News
Slide 43: Investment Stock Pension Funds of MILA
MILA INVESTMENT STOCK PENSION FUNDS OF MILA Source: Financial Superintendence of Colombia, Superintendence of Banking, Insurance and Pension Funds of Peru, Ministry of Finance and Public Credit of Mexico, Chilean Pension Fund Superintendence Data: Colombia/December 2014; Peru/October 2014; Mexico/Au
Slide 44: Agenda
Agenda 1. Chile: a place to invest 2. Chilean Stock Market 3. MILA 4. Santiago Stock Exchange 5. Projects
Slide 45: About Santiago Stock Exchange
SANTIAGO STOCK EXCHANGE ABOUT SANTIAGO STOCK EXCHANGE • Created on November 27,1893 • 27 Brokerage Houses • Market Cap.: 233,042 MMUS$ • Available Products: Equities ETF Fixed Income Instruments Money Market Instruments Investment Funds / Mutual Funds Futures Foreign Instruments • Subs
Slide 46: Balance Sheet
SANTIAGO STOCK EXCHANGE BALANCE SHEET Other 4% MMUS$ Listing Total Current Assets 42,49 6% Total Long-term Assets 39,32 Data Trading services Total Assets 81,81 Dissemination 32% 7% MMUS$ Total Current Liabilities 7,00 Clearing and 22,37 Total Long-term Liabilities settlement 12% SSE's Total Equity
Slide 47: SSE's Market Share 2014
SANTIAGO STOCK EXCHANGE SSE’s MARKET SHARE 2014 ESE 2% SSE 92% ESE VSE SSE 8% 0% 98% EQUITY VSE MONEY 0% MARKET VSE 0% ESE FIXED 0% INCOME SSE 100% SSE: Santiago Stock Exchange ESE: Electronic Stock Exchange VSE: Valparaíso Stock Exchange Source: Santiago Stock Exchange
Slide 48: Business Lines
SANTIAGO STOCK EXCHANGE BUSINESS LINES TRADING EQUITY / FIXED INCOME / MONEY MARKET / DERIVATIVES
Slide 49: Always Evolving
SANTIAGO STOCK EXCHANGE ALWAYS EVOLVING 2015 1917 1995
Slide 50: CCLV: Central Counterparty
SANTIAGO STOCK EXCHANGE CCLV: CENTRAL COUNTERPARTY • CCLV is a subsidiary company of Santiago Stock Exchange (97.27% owned by SSE). • Operations begun on September 1, 2010. • Manages two clearing and settlement systems: Central Counterparty: for Equity Market and Derivatives. Securities Settleme
Slide 51: Agenda
Agenda 1. Chile: a place to invest 2. Chilean Stock Market 3. MILA 4. Santiago Stock Exchange 5. Projects
Slide 52: Projects 2015: Chilean Capital Market
PROJECTS 2015: CHILEAN CAPITAL MARKET • Tax Reform This project was approved on September 2014, and it includes four main objectives: increasing the tax burden on three GDP points, higher tax equity to improve income distribution, new incentives for investment and savings and less tax evasion. Taxes
Slide 53: Projects 2015: Chilean Capital Market
PROJECTS 2015: CHILEAN CAPITAL MARKET • Labor Reform According to the data from the Labor Department, the unionization rate in the country reached 14.2% in 2013. In this context, in the Government´s program, the authority pledged to increase the bargaining power of workers inside the company, empowe
Slide 54: Projects 2015: Santiago Stock Exchange
PROJECTS 2015: SANTIAGO STOCK EXCHANGE In addition to its overall objective of developing the Chilean capital market, during 2015, Santiago Stock Exchange will have its focus on the following topics: 1. Market Operational Rules. 2. Corporate Governance and Brokerage Houses Control Systems . 3. Issue
Slide 55: Market Operational Rules
PROJECTS 2015: SANTIAGO STOCK EXCHANGE 1.- Market Operational Rules: On issues concerning regulatory improvements on the stock market, the work done by the Board of Directors raised several key objectives that promote liquidity, improve the price formation process and increase market competition bet
Slide 56: Corporate Governance and Brokerage Houses Control Systems
PROJECTS 2015: SANTIAGO STOCK EXCHANGE 2.- Corporate Governance and Brokerage Houses Control Systems: The Best Practices Committee issued a report which contains provisions on the prevention and management of potential conflicts of interest between brokers. This report aims to consolidate and progre
Slide 57: Issuers Information and Their Relation with Investors
PROJECTS 2015: SANTIAGO STOCK EXCHANGE 3.- Issuers information and their relation with investors Santiago Stock Exchange, main participant in the Chilean stock market, is working on a series of recommendations for issuers, to strengthen market transparency. These new initiatives complement the exist
Slide 58: Fix Income Market Development
PROJECTS 2015: SANTIAGO STOCK EXCHANGE 4.- Fix income market development In its ongoing challenge to develop the market, Santiago Stock Exchange is working on the migration of the trading systems for Money Market and Fixed Income Instruments to JAVA FX Platform (Desktop HT). Main functions: • Tradin
Slide 59: Demutualization Evaluation
PROJECTS 2015: SANTIAGO STOCK EXCHANGE 5. Santiago Stock Exchange demutualization evaluation In January 2015, Santiago Stock Exchange Board members agreed to established a Committee of Directors for analysis, supervision and monitoring of strategic character proposals. In a first stage, its main obj
Slide 60: Capital Market Development: Derivatives and Venture
PROJECTS 2015: SANTIAGO STOCK EXCHANGE 6. Capital Market Development A) Derivatives Santiago Stock Exchange will launch the first Derivatives Market in Chile. In this market, local and foreign investors will be able to trade standardized Future Contracts based on Equity Indices, Currency and Fixed I
Slide 61: Capital Market Development: MILA
PROJECTS 2015: SANTIAGO STOCK EXCHANGE 6. Capital Market Development C) Integrated Latin American Market (MILA) MILA´s 2015 challenges: • Positioning MILA as a country issue. • Build a complete market infrastructure, improving securities settlement. • Standardize regulatory issues. • Improve and exp
Slide 62: SEBRA Capital Improvement
PROJECTS 2015: SANTIAGO STOCK EXCHANGE 6. Capital Market Development D) SEBRA Capital improvement Santiago Stock Exchange is working on renewing SEBRA Capital, a administrator system for brokers and mutual funds and private managers which automates the main business of their clients. SEBRA Capital i
Slide 63: A Digital Exchange
PROJECTS 2015: SANTIAGO STOCK EXCHANGE 6. Capital Market Development E) A digital Santiago Stock Exchange Santiago Stock Exchange is currently working on three major projects that will improve the institutional digital platforms. Current and potential investors will have market information in a fast
Slide 64: Santiago Stock Exchange International Relations
Santiago Stock Exchange International Relations Email: rrii@bolsadesantiago.com Disclaimer The content of this presentation is for general information purposes only and does not constitute advice. Santiago Stock Exchange (SSE) tries to provide content that is true and accurate as of the date of writ
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