Dubai Financial Market (dfm) - Pjsc · DFM:DFM
Dubai Financial Market (dfm) - Pjsc — Dubai Financial Market — Q2 2015 Earnings Presentation
37 slides from Dubai Financial Market (dfm) - Pjsc's earnings presentation, 2015
Slide 1: Dubai Financial Market Investor Presentation Q2 2015
Dubai Financial Market Investor Presentation Q2 ,2015
Slide 2: i MENASA Region : Macroeconomics Dubai : Middle East’s Financial Hub
i MENASA Region : Macroeconomics ………………………. 1 Dubai : Middle East’s Financial Hub ………………………. 5 UAE Capital Markets : DFM / ND / ADX ………………………. 10 Two Exchanges, One Market : DFM & ND …………………….... 16 Corporate Strategy : Going Forward …………………….... 28 www.dfm.ae
Slide 3: The Region – MENASA / GCC / UAE
THE REGION – MENASA / GCC/ UAE AN ECONOMIC POWERHOUSE
Slide 4: MENASA Region: Solid Economic Fundamentals
2 MENASA REGION : SOLID ECONOMIC FUNDAMENTALS -PROMISING GROWTH Population and Growth Oil Reserves and Production (% of Global) More than 30% of world (Millions) 2400 population 1.7% 60% MENASA region 2200 1.6% 40% is emerging as a 20% 2000 1.5% powerful 0% economic bloc 1800 1.4% MENASA* MENA North
Slide 5: GCC Region: Liquidity on the Back of Strong Fundamentals
3 GCC REGION : LIQUIDITY ON THE BACK OF STRONG FUNDAMENTALS– KEY EMERGING MARKET The UAE, the second biggest Arab economy, is set to record 3.5 % growth in GDP in 2015, led by a focus on adopting industrial policies that will drive sustainable development across the UAE. -IMF 2015 Forecast GCC GDP G
Slide 6: UAE: Growth Prospects
4 UAE: GROWTH PROSPECTS • Strong growth in the non-hydrocarbon sector Key Contributors to Growth • Regional wealth and liquidity • Fiscal discipline with increase in investment spending • UAE’s service driven economy benefitting from the global trade • AED 750 B worth of infrastructural projects to
Slide 7: UAE Will Adhere to Its Long Term Strategy to Diversify Its Economy
5 UAE WILL ADHERE TO ITS LONG TERM STRATEGY TO DIVERSIFY ITS ECONOMY Oil Sector vs. Non-Oil Sector Oil Sector vs. Non-Oil Sector Comments Contribution to UAE GDP (2014) Contribution to UAE GDP (2021) • UAE's long term strategy is to diversify its economy and reduce its dependence on 20 oil revue 31
Slide 8: Substantial Growth in Transport, Storage, W&R and Construction Sectors
6 SUBSTANTIAL GROWTH IN TRANSPORT, STORAGE, W&R AND CONSTRUCTION SECTORS Transport and Storage Wholesale and Retail Construction Growth Rate Growth Rate Growth Rate 10 8 8 6 6 5 10% 4 8% 4 8% 7% 6% 2 2 3% 0 0 0 2013 2014 2013 2014 2013 2014 Source: IMF, World Bank www.dfm.ae
Slide 9: Dubai: The Financial Hub of Middle East
DUBAI THE FINANCIAL HUB OF MIDDLE EAST
Slide 10: Dubai: Vision & Economic Strengths
6 DUBAI: VISION & ECONOMIC STRENGTHS “Our vision is clear, our goals are obvious, our strengths are great, our will Dubai GDP by Economic Sectors - 2014 is strong and we are ready. We want Other Sectors Government Dubai to be a global center of Financial Sector 6% Sector excellence, creativity and l
Slide 11: Dubai: Islamic Economy Initiative
7 DUBAI: ISLAMIC ECONOMY INITIATIVE Initiative: The vision of His Highness Sheikh Mohammed, Ruler of Dubai, to transform Dubai into the capital of the Islamic economy has given a different resonance to this fast-growing sector of global economy. Dubai has indeed a row of strengths to take on that st
Slide 12: Dubai: Recent Events
8 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 Key
Slide 13: Dubai: New vs. Old Company Law
9 DUBAI: NEW Vs. OLD COMPANY LAW Requirements Greenfield Convert to Public Family Business Offer Size Not be less than AED 10 million. Not be less than AED 10 million. Not be less than AED 10 million. Founders Minimum 10 founding shareholders. Minimum 10 founding shareholders. Minimum 10 founding sh
Slide 14: Capital Markets: United Arab Emirates
CAPITAL MARKETS UNITED ARAB EMIRATES
Slide 15: Capital Markets: Key Exchanges in the Region
11 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 16: Market Capitalization: Liquidity Review
12 MARKET CAPITALIZATION LIQUIDITY REVIEW END-OF-PERIOD MARKET CAPITALIZATION (2003 –Q2, 2015 ) All figures in AED Mn 1.14% increase in market capitalization in Q2,2015 1,500 1,156.4 (AED Million) 1,000 507.5 319.1 136.7 500 239.4 55.4 215.8 200.8 182.0 322.7 369.5 259.7 183.8 0 Q1 Source : DFM/ND A
Slide 17: Trade Values: DFM Performance
13 TRADE VALUES : DFM PERFORMANCE All figures in AED Mn Trade Value on DFM DFM exchange 2003 – Q2,2015 has seen a slow down in trading driven by regional 405,144 instability, oil 379,410 347,966 600,000 prices and 305,173 381,507 general 400,000 sentiments. 173,508 51,056 159,886 3,997 200,000 69,66
Slide 18: Average Traded Value - DFM
14 TRADE VALUES : DFM PERFORMANCE AVERAGE TRADED VALUE - DFM All figures in AED ‘000 (2003 – Q2,2015 ) 1,600,000 (AED Thousands) 1,505,596 1,519,946 1,400,000 1,354,995 1,238,313 1,240,539 1,200,000 1,000,000 800,000 807,734 694,030 642,113 600,000 400,000 277,549 200,000 173,660 193,549 127,841 0 1
Slide 19: Market Velocity
15 MARKET VELOCITY DFM PERFORMANCE DFM Market Velocity (2003 – Q2,2015) 140% 127.5% 118.2% 120% 109.1% 100% 80.4% 74.8% 80% 61.6% 60% 37.3% 35.0% 34.7% 40% 28.0% 26.5% 17.6% 20% 7.2% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jun-15 *Velocity is calculated as Annualized Trade Val
Slide 20: DFM / Nasdaq Dubai: Two Exchanges, One Market
DFM / NASDAQ DUBAI TWO EXCHANGES, ONE MARKET
Slide 21: UAE Markets: Regulations & Ownership
17 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 22: DFM: General Index Performance
19 DFM : GENERAL INDEX PERFORMANCE AS OF Q2, 2015 DFM General Index Performance 2003 – Q2, 2015 8,000 7,426.37 7,000 5,931.95 6,000 5,000 4,127.33 4,086.83 3,774.00 4,000 3,369.81 3,000 2,515.16 1,636.29 1,803.58 1,630.52 1,622.53 2,000 1,353.39 1,000.00 1,000 0 2003 2004 2005 2006 2007 2008 2009 20
Slide 23: DFM: General Index Comparison
19 DFM : GENERAL INDEX - COMPARISION PERFORMANCE AS OF Q2, 2015 Index performance of global YTD Index Percentage Change exchanges 20.0% Q2, 2015 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% Source : Reuters / DFM / ND Analytics www.dfm.ae
Slide 24: DFM: Trading by Client Type
21 DFM : TRADING BY CLIENT TYPE Year to Date Trading – By Client Type 100 Institutional 15% 22% 21% 22% 25% 24% 25% Retail 29% 27% 28% 80 60 85% 40 78% 79% 78% 75% 76% 73% 72% 75% 71% 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jun-15 Source : Reuters / DFM / ND Analytics www.dfm.ae
Slide 25: DFM: Trading by Nationality
22 DFM : TRADING BY NATIONALITY (UAE vs. Non-UAE) 100 5% OTHERS 12% 12% 15% 15% 13% 14% 16% 9% 18% 20% GCC 6% 6% 6% 6% 8% 10% ARABS 80 5% 9% 17% 12% 6% UAE 14% 22% 23% 25% 22% 20% 22% 23% 60 40 69% 70% 63% 60% 56% 54% 57% 56% 53% 52% 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jun-15 Source :
Slide 26: DFM: Trade Matrices Sector Mix
22 DFM : TRADE MATRICES SECTOR MIX Trade Activity – Sector wise Trading Q2 2015 By Sector Transportation Telecom 3% Q2, 2015 1% Financial Services 12% Banking 25% Real Estate 53% Others 4% Insurance Services 1% 1% Source : DFM/ND Analytics www.dfm.ae
Slide 27: DFM: Ownership
23 DFM : OWNERSHIP SHAREOWNERSHIP RATIOS BY TYPE OF INVESTOR ARAB BY NATIONALITY 4% Distribution RETAIL 27% GCC of Share 7% OTHERS Ownership 10% Q2, 2015 INSTITUTIONAL 73% UAE 79% Foreign Ownership (% of Market Cap) 25.0% 20.8% 20.0% 16.0% 16.0% 13.0% 12.0% 12.0% 11.7% 15.0% 10.0% 11.2% 8.0% 10.0% 5
Slide 28: DFM: Market Activity
www.dfm.ae 6/28/2015 AED 1.98 6/21/2015 6/14/2015 6/7/2015 5/31/2015 5/24/2015 5/17/2015 5/10/2015 5/3/2015 4/26/2015 DFM Share Price (AED) 4/19/2015 4/12/2015 DFM SHARE PRICE & AVERAGE TRADING 4/5/2015 3/29/2015 3/22/2015 3/15/2015 DFM : MARKET ACTIVITY 3/8/2015 3/1/2015 2/22/2015 2/15/2015 2/8/201
Slide 29: DFM: Financials Revenue Mix
25 DFM : FINANCIALS REVENUE MIX 2009 2010 2011 2012 2013 2014 Q2 , 2015 Trading Commission Fees 374.7 158.7 76.8 114.8 341.6 806.0 220.3 Key Financial Net Investment Income 91.5 73.2 54.6 45.3 53.4 75.4 32.4 Other Fee Income 36.7 31.9 51.9 37.0 63.7 86.9 29.9 2009- 2014 Total Revenue 502.9 263.8 183
Slide 30: DFM: Financials Revenue Mix & Growth
26 DFM : FINANCIALS REVENUE MIX & GROWTH Percentage Share of Revenue Mix Revenue 7.3% 12.1% Breakdown 18.2% 28.3% 18.8% 13.9% 9.0% 10.6% 2009- Q2 27.7% 11.6% 7.8% 11.5% 2015 29.8% 23.0% 74.5% 60.2% 58.2% 74.5% 83.2% 41.9% 78.0% 2009 2010 2011 2012 2013 2014 Q2 2015 Trading Commission Fees Net Imvest
Slide 31: DFM: Financials Revenue Mix & Growth
27 DFM : FINANCIALS REVENUE MIX & GROWTH 7.3% 12.1% 13.9% 9.0% 18.8% Revenue 18.2% 28.3% 11.6% 7.8% 27.7% Breakdown 23.0% 2009-2014 29.8% 74.5% 74.5% 83.2% 60.2% 58.2% 41.9% 2009 2010 2011 2012 2013 2014 Trading Commission Fees Net Investment Income Other Fee Income 198% 136% 72% 63% 49% -24% -13% 4
Slide 32: Shareholder Value: Strategic Vision
28 SHAREHOLDER VALUE STRATEGIC VISION SUPPLY DEMAND (Equity listings and ( Market access, financial instruments) members & investors) STAKEHOLDER VALUE SERVICES ( Innovative customer- centric services) • Direct Market Access (DMA) • IvESTOR Card • eBroker Services • DFM international • Dividend dist
Slide 33: Corporate Strategy: DFM – Nasdaq Dubai
CORPORATE STRATEGY DFM – NASDAQ DUBAI
Slide 34: Strategic Initiatives: Addressing Future Growth
29 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 • Smartphone
Slide 35: Strategic Initiatives: MSCI Upgrade
30 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% for 2015 B. SIZE AND LIQUIDITY REQUIREMENTS B.1 Num
Slide 36: Strategic Initiatives: Pioneering IPO Study
31 STRATEGIC INITIATIVES PIONEERING IPO STUDY 2009 DFM Research has over 500 2011 commissioned companies Research over Targeted Independent in the UAE 2014 IPO 500 companies Research in the region, IPO listing marketing 2015 Consultants CIS, and Africa in DFM - campaign New for MARKA & to attract Co
Slide 37: Contacts
ii CONTACTS : Racha El Hassan Chamut Areej Al Saeed Head of Investor Relations Manager 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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