Nigerian Exchange Group Plc · NSENG:NGXGROUP
Nigerian Exchange — FY2021 Earnings Presentation
32 slides from Nigerian Exchange's earnings presentation, Mar 24, 2022
Slide 1: NGX Group Plc – FY 2021 Investor and Analyst Presentation
NGX GROUP PLC – FY 2021 INVESTOR AND ANALYST PRESENTATION 24 MARCH 2022 FY 2021 INVESTOR & ANALYST PRESENTATION | THURSDAY 24 MARCH 2022 | 1
Slide 2: Disclaimer
DISCLAIMER This presentation contains or incorporates by reference forward-looking statements which reflect the expectations of the Directors and other members of senior management (the "Management") of Nigerian Exchange Group plc ("NGX Group" or the "Company"), regarding the future growth, results
Slide 3: Today's Presenters
TODAY’S PRESENTERS Oscar N. Onyema, OON Cyril Eigbobo Group Managing Director and Group Chief Financial Officer Chief Executive Officer FY 2021 INVESTOR & ANALYST PRESENTATION | THURSDAY 24 MARCH 2022 | 3
Slide 4: Content
CONTENT 1. 2021 OVERVIEW 5 2. GROUP FINANCIAL REVIEW 13 3. OPERATING SUBSIDIARIES’ PERFORMANCE, ASSOCIATES, AND OTHER EQUITY INVESTMENTS 19 4. STRATEGIC OUTLOOK 24 5. APPENDIX 28 FY 2021 INVESTOR & ANALYST PRESENTATION | THURSDAY 24 MARCH 2022 | 4
Slide 5: 2021 Overview
2021 OVERVIEW Oscar N. Onyema, OON, GMD/CEO FY 2021 INVESTOR & ANALYST PRESENTATION | THURSDAY 24 MARCH 2022 | 5
Slide 6: Full Year 2021 Highlights
FULL YEAR 2021 HIGHLIGHTS Financial Highlights Non-financial Highlights Revenue PAT Successful digital offering N5.8bn N2.2bn of MTN Nigeria shares (+14.9%) (+22.2%) FY 2020: N5.0bn FY 2020: N1.9bn 114,938 new CSCS Other Income ROE accounts* were created N1.0bn 6.6% representing new market (+3.0%) (
Slide 7: NGX Group Is Positioned for Growth
NGX GROUP IS POSITIONED FOR GROWTH Completion of the demutualization of the Nigerian Stock Exchange in March 2021 Successful Listing by Introduction of NGX Group on the Main Board of Nigerian Exchange Limited in October 2021 NGX Group is a non-operating investment holding company with 3 wholly owned
Slide 8: Restructured as a Non-Operating Holding Company Across the Capital Market Value Chain
RESTRUCTURED AS A NON-OPERATING HOLDING COMPANY TO BE ACTIVE ALONG THE ENTIRE CAPITAL MARKET VALUE CHAIN NIGERIAN EXCHANGE GROUP PLC (‘NGX Group’) NIGERIAN EXCHANGE NGX REGULATION NGX REAL ESTATE 100% 100% 100% (‘NGX’ or the ‘Exchange’) (‘NGX REGCO’) (‘NGX RELCO’) • Leading listing and trading venue
Slide 9: Structured as a Non-Operating HoldCo to Optimize Growth
STRUCTURED AS A NON-OPERATING HOLDCO TO OPTIMIZE GROWTH Focus on executing deals and transactions to scale the business, raising capital, and optimal corporate governance structure Cohesive and decentralized management structure that allows the holding company to maximise its performance and growth
Slide 10: Multi-Asset Platform Business with Diversified Revenue Streams
MULTI-ASSET PLATFORM BUSINESS WITH DIVERSIFIED REVENUE STREAMS AND SIGNIFCANT GROWTH POTENTIAL 100% 100% 100% 31.1% 27.7% NGX Regulation* Central Securities NGX Exchange NGX Real Estate NG Clearing (Not profit-oriented) Clearing System Revenue Streams ✓ Transaction Fees ✓ Regulatory fees ✓ Rental In
Slide 11: NGX Group Non-Operating HoldCo Income Breakdown
NGX GROUP NON-OPERATING HOLDCO INCOME BREAKDOWN Treasury NGX Group Dividend Investment HoldCo Income Income Revenue • Revenue of the non-operating HoldCo is made up of dividends and treasury investment income • Dividend income is generated from dividends paid by the subsidiaries, and associate compa
Slide 12: Clearly Defined Expansion Plan and Growth Opportunities Across the NGX Group
CLEARLY DEFINED EXPANSION PLAN AND BROAD SPECTRUM OF GROWTH OPPORTUNITIES ACROSS THE NGX GROUP Diversification, efficiencies, market re-bound and Significant earnings growth from underlying international expansion to drive growth operational changes and new audiences Strong listings pipeline demand
Slide 13: Group Financial Review
GROUP FINANCIAL REVIEW Cyril Eigbobo, GCFO FY 2021 INVESTOR & ANALYST PRESENTATION | THURSDAY 24 MARCH 2022 | 13
Slide 14: NGX Group Recorded Improved Profitability
NGX GROUP RECORDED IMPROVED PROFITABLITY (+13.0%) (+22.2%) (+25.4%) (+3.0%) (+14.9%) (+10.0%) (+6.6%) (+5.8%) (+400.0%) equity accounted income tax investees • 14.9% revenue growth was driven by 24.8% growth in listing fees, 4.9% growth in treasury investment income, 2.1% growth in transaction fees,
Slide 15: Increasing Diversification in the Group's Gross Earnings Mix
INCREASING DIVERSIFICATION IN THE GROUP’S GROSS EARNINGS MIX 1.2% 2021 19.8% 42.6% 11.1% 10.1% 15.0% 0.1% 1.5% 2020 21.3% 47.1% 10.1% 2.6% 16.5% 1.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Treasury investment income Transaction fees Listing fees Entrance levies Rental income Other fees Other In
Slide 16: Moderate Cost Growth with Ongoing Focus on Cost Efficiency
MODERATE COST GROWTH WITH ONGOING FOCUS TO IMPROVE OVERALL COST EFFICIENCY (+6.6%) (-13.3%) (+22.0%) (+16.4%) (+0.0%) (-16.8%) on assets • Total expenses grew by 6.6% to N6.5bn (FY 2021: N6.1bn) mostly driven by a 22.0% growth in operating expenses (41.6% of total expenses). Nonetheless, there was a
Slide 17: Operating Expense Dynamics Amidst Ongoing Repositioning
OPERATING EXPENSE DYNAMICS REFLECT PROGRESSIVE AND FORWARD THINKING APPROACH OF THE GROUP, AMIDST ONGOING REPOSITIONING (8.6%) (FY 2020) (34.1%) 19.7% 20.80% Repairs and maintenance Director sitting allowances and expenses Professional fees Legal expenses (0.0%) 5.6% 8.9% (11.9%) Software, Internet
Slide 18: Strengthened Financial Position
STRENGTHENED FINANCIAL POSITION 2021 5.9% 4.4% 37.9% 39.0% 11.1% 1.2% 0.5% 2020 19.9% 2.5% 29.0% 35.4% 12.1% 0.4% 0.7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cash and cash equivalents Trade and other receivables Prepayment Investment securities Investment in associates Property and equipment In
Slide 19: Operating Subsidiaries Performance, Associates and Other Equity Investments
OPERATING SUBSIDIARIES PERFORMANCE, ASSOCIATES AND OTHER EQUITY INVESTMENTS Oscar N. Onyema, OON, GMD/CEO FY 2021 INVESTOR & ANALYST PRESENTATION | THURSDAY 24 MARCH 2022 | 19
Slide 20: NGX Exchange: Well-Defined Strategy to Sustain Market Dominance
NGX EXCHANGE: WELL-DEFINED STRATEGY TO SUSTAIN MARKET DOMINANCE Sustainability Digital Transformation • In collaboration with the Group, 1 • Minimize friction in the interaction between NGX NGX Exchange continues to focus platforms and market participants on the four pillars of community, 5 • Digiti
Slide 21: NGX Regulation: Delivering on Its Mandate as Independent Regulator
NGX REGULATION: DELIVERING ON ITS MANDATE AS AN INDEPENDENT REGULATOR OF NGX EXCHANGE’S MARKET 2021 – 2023 Strategic Plan Stakeholder Engagement Stakeholder Engagement Market Guidance • NGX RegCo is not profit • Continue to actively engage • Substantial engagement aimed at • Committed to working wit
Slide 22: NGX Real Estate: Focused on Executing Its Strategic Plans
NGX REAL ESTATE: FOCUSED ON EXECUTING ITS STRATEGIC PLANS The Company has crafted its strategy and is going into the gradual implementation of its strategic goals Lease and facility management Real estate Provision of development security for and resale NGX Group and other companies The company is f
Slide 23: Investments Across Exchange Verticals, OTC Segment and Fintech Companies
INVESTMENTS ACROSS EXCHANGE VERTICALS, OTC SEGMENT, VERTICAL AND HORIZONTAL INTEGRATION, AND HIGH GROWTH FINTECH COMPANIES Central Securities The principal activity of the company is to act as a depository, clearing and settlement agency for all quoted and traded Clearing System securities in the Ni
Slide 24: Strategic Outlook
STRATEGIC OUTLOOK Oscar N. Onyema, OON, GMD/CEO FY 2021 INVESTOR & ANALYST PRESENTATION | THURSDAY 24 MARCH 2022 | 24
Slide 25: Optimistic Outlook Underpinned by Significant Growth Opportunities
OPTIMISTIC OUTLOOK IS UNDERPINNED BY SIGNIFICANT GROWTH OPPORTUNITIES ACROSS THE GROUP 1 Diversify the business across the capital markets value chain • Be active in every sphere of the capital markets value chain in Nigeria • Growing the Group’s presence across Africa as a leading integrated market
Slide 26: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 1 Highly attractive market dynamics with significant growth potential 2 Diversified business model poised to drive attractive returns 3 Strong competitive positioning driven by strategic partnerships 4 Clearly defined expansion plan and spectrum of growth opportunities Best
Slide 27: Thank You
THANK YOU Follow NGX Group Twitter: @ngxgrp Contact Details Instagram: @ngxgrp Investor Relations YouTube: www.youtube.com/ngxgroup ir@ngxgroup.com Facebook: www.facebook.com/ngxgroup LinkedIn: https://www.linkedin.com/company/ngxgroup FY 2021 INVESTOR & ANALYST PRESENTATION | THURSDAY 24 MARCH 2022
Slide 28: Appendix
APPENDIX FY 2021 INVESTOR & ANALYST PRESENTATION | THURSDAY 24 MARCH 2022 | 28
Slide 29: NGX Exchange Limited – Operational Update
NGX EXCHANGE LIMITED (‘NGX’ or ‘the Exchange’) – OPERATIONAL UPDATE Equities market Equities and Fixed Income Market Capitalization • Number of new listings - 4 • Key listings include Nigerian Exchange Group and Guaranty Trust Holding Company N’Trillion • Execution of the MTN Nigeria offer, the firs
Slide 30: NGX Exchange Limited – Operational Update
NGX EXCHANGE LIMITED (‘NGX’ or ‘the Exchange’) – OPERATIONAL UPDATE Market development Business Development • Launched an enhanced version of its X-Mobile App designed to enhance participation by providing users with market snapshots and analytics, securities • Customer experience: In line with the
Slide 31: NGX Regulation – Operational Update
NGX REGULATION (‘NGX RegCo’) – OPERATIONAL UPDATE Strategic Initiatives and activities • Legislative Review and Capital Market Development Initiatives: Following their identification of Nigerian Laws requiring repeal or amendment, the • Standardised NGX Forms for Trading License Holders (TLHs): Thes
Slide 32: NGX Real Estate – Operational Update
NGX REAL ESTATE (‘NGX RelCo’) – OPERATIONAL UPDATE Strategic Initiatives and activities Cost Savings (N) • Reviewing sale and lease back options for the NGX building • Exploratory engagements with a supplier on a power purchase 9,743,853 agreement proposal to supply power to the NGX building Operati
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