Boursa Kuwait Securities Company (k.p.s.c) · KSE:BOURSA
Boursa Kuwait Securities Company (k.p.s.c) — Q1 2024 Earnings Presentation
36 slides from Boursa Kuwait Securities Company (k.p.s.c)'s earnings presentation, May 14, 2024
Slide 1: Analyst Conference Transcript Q1 FY2024 cover letter
e194 Guaygs Q BOURSA KUWAIT Date: 14 May 2024 2024 gota 14 rfuytitl To: Issuers and Development Services Department Ona Fahl slrcHl jrglng Less Bylo} /soLutt Boursa Kuwait C19 SHI Lyaygs Dear Sirs, eookagy ya as Subject: Analyst Conference Transcript — Q1 of FY2024 2024 4,3 dinall -, il [ere pees as
Slide 2: Analysts Conference Q1 - 2024
NALYSTS CONFERENCE Q1 - 2024 BOURSA KUWAIT Page 1 of 12
Slide 3: Analysts Conference Q1 - 2024
ANALYSTS CONFERENCE Q1 - 2024 − − − − BOURSA KUWAIT Page 2 of 12
Slide 4: Call introduction and speakers
ANALYSTS CONFERENCE Q1 - 2024 Elena Sanchez Good afternoon, everyone. This is Elena Sanchez from EFG Hermes and I would like to welcome you all to Boursa Kuwait’s Q1 2024 earnings call. It is a pleasure to have with us on the call the following speakers from Boursa Kuwait, Mr. Naim Azad Din, Chief F
Slide 5: Development plans and strategy
ANALYSTS CONFERENCE Q1 - 2024 In terms of our development plans and strategy, we made major strides in finalising the market-wide tests for qualified brokers and their direct connectivity with their respective banks for seamless management of clients’ cash. After twenty-four (24) tests, we are neari
Slide 6: Trading activity and listings
ANALYSTS CONFERENCE Q1 - 2024 increased by 6%. As for the split of trade turnover between Retail and Institutional Investors, an increase of 19% was recorded by Retail Investors. Additionally, there was a 5.38% increase in active accounts relative to the same period of last year. To conclude my part
Slide 7: Operating profit and net profit
ANALYSTS CONFERENCE Q1 - 2024 ratio remains comparable at 33.37% compared to 33.67% recorded in 2023 and it remains trending below the targeted range of between 38% to 42%. Subsequently, the Operating profit improved by 9.81% to KWD 5.58 million compared to KWD 5.08 million. Resultantly, the Operati
Slide 8: Dividend and operating revenues
ANALYSTS CONFERENCE Q1 - 2024 31st December 2023, the company declared a total dividend of approximately KWD 14.86 million. This represents approximately 94% pay-out ratio. The aggregated quarterly Operating revenues improved by 9.31% from KWD 7.66 million recorded in Q1 2023 to KWD 8.37 million in
Slide 9: Revenue by service line
ANALYSTS CONFERENCE Q1 - 2024 increase of 17.21%. The number of foreign trade confirmations during the quarter was 229,011 from 195,392 recorded in 2023. Clearing operations represent a higher weightage of total Operating revenues at 14.37% compared to 13.38% in 2023. Shareholders register services
Slide 10: Operating expenses discussion
ANALYSTS CONFERENCE Q1 - 2024 weightage to reach 15.28% of the total Operating expenses. The increase was partly attributed to costs related to maintenance of infrastructure as we are transitioning to a new CAPEX refreshments program cycle. This cost is expected to be embedded into future fixed asse
Slide 11: Q&A: margin trading and IPOs
ANALYSTS CONFERENCE Q1 - 2024 With this, I conclude my presentation. Fahad Al-Besher Thank you, Ms. Noura and thank you, Mr. Naim. Now we are ready for Q&A. Please submit your inquiries in the question text area. We will pause for a minute to receive most of your questions and answer them accordingl
Slide 12: Q&A: operating expenses
ANALYSTS CONFERENCE Q1 - 2024 the performance fee payable to market makers making the market for Boursa Kuwait’s shares. So, in view of the above, it is worth emphasising that we do not foresee any of the expenses incurred that contributed to the increase during the quarter to be extraordinary. As w
Slide 13: Closing and investor relations contact
ANALYSTS CONFERENCE Q1 - 2024 Fahad Al-Besher We believe we have covered all of the questions that were raised today during the call. If there are any follow-up questions which are not raised during this call, you can reach us at our dedicated Investor Relations’ email at ir@boursakuwait.com.kw. Tha
Slide 14: Earnings Briefing
e e r gs ve Earnings Briefing Naim Azad Din, Chief Financial Officer Noura Al Abdulkareem, Head of Markets Sector 9 May 2024
Slide 15: Disclaimer
DISCLAIMER This presentation is not an offer or an invitation to subscribe to or purchase any securities. Boursa Kuwait Securities Company (K.P.S.C.) 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 16: Agenda
AGENDA No. Segments Slide No. 1 Business Updates 4 2 Financial Highlights and Performance 11 3 Q&A 18
Slide 17: Business Updates
10.40.48 BKA airsnare index (PR) eee 9 Tort Iie Up o Youume 176,124,956 er Q1 202 i | ee Business Updates € > Noura Al Abdulkareem, Head of Markets Se
Slide 18: Market Developments
MARKET DEVELOPMENTS Diversifying product offerings, increasing accessibility and transparency of our market while continuing to improve infrastructures. MD1 MD2 MD3 MD3.2 MD4. + Ticks & Price + Market + REITs + Netting + Derivatives CCP Limits Segmentation . . oo + Intentional + Tradable Rights + De
Slide 19: 838,824 14,365 3,542 2,639 544,159 8,517
838,824 14,365 3,542 2,639 544,159 8,517
Slide 20: Premier and Main market
43% 47% 18% 28% 45.13 8.32 43.11 7.10 82% 36.81 36.01 72% 57% 53% PREMIER MAIN
Slide 21: 7.48% -3.62% 7.48% -3.31% 7.47% 7.08% -2.20% -1.72%
7.48% -3.62% 7.48% -3.31% 7.47% 7.08% -2.20% -1.72%
Slide 22: Value Turnover by Investor Geography and Type
Breakdown of Value Turnover by Investor Geography Breakdown of Value Turnover by Investor Type 19% 15% 32% 38% 62% 68% 81% 85%
Slide 23: Active Accounts
Active Accounts are those that have executed one trade at least in the last six months
Slide 24: fe) TS) S © — ic Qe ‘a ‘c 1) £ (=) xe} N
fe) TS) S © — ic Qe ‘a ‘c 1) £ (=) xe} 6 N < ‘® z
Slide 25: Financial Highlights
OPERATING REVENUES OPERATING OPERATINGEXPENSES EXPENSES OPERATING PROFIT OPERATING PROFIT NP ATTRI. TO EQ. HOLDERS OF PARENT • KWD (12,673,036) • KWD 18,346,463 8,373,500 • KWD (2,794,001) 5,579,499 4,684,520 • ↑ (12,673,036) 22.32% • ↑ 54.88% 9.31% • ↑ 8.32% 22.01% 9.81% 8.63% VALUE TRADED COST TO
Slide 26: Quarterly Operating Revenues, Expenses and Profit
Operating Revenues ('000) Operating Expenses ('000) 4,691 8,178 7,660 7,430 7,360 8,374 2,579 2,672 2,467 2,794 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Operating Profit ('000) NP Attri. to Eq. Holders of Parent ('000) 6,000 5,081 5,000 4,31
Slide 27: Total Assets, Liabilities and Equity
Total Assets ('000) 123,300 123,568 Q1 FY2023 Q1 FY2024 Total Liabilities ('000) Total Shareholders Equity ('000) 30,948 92,352 95,500 28,068 Q1 FY2023 Q1 FY2024 Q1 FY2023 Q1 FY2024
Slide 28: Operating Revenues
Operating Revenues ('000) Subscription Fees Trading Commission Clearing Shareholders Register Central Depository Settlement Miscellaneous Total Q1 FY2024 1,807 21.57% 2,151 25.69% 1,203 14.37% 700 8.37% 1,106 13.21% 748 8.93% 657 7.85% 8,374 Q1 FY2023 1,793 23.40% 1,598 20.86% 1,025 13.38% 795 10.38
Slide 29: Operating Expenses
Operating Expenses ('000) Staff IT Depn & Amortization Building Consultancy Fees CMA Commission Impairment Others Total Q1 FY2024 1,426 51.05% 427 15.28% 202 7.23% 69 2.47% 217 7.77% 72 2.59% 26 0.95% 354 12.66% 2,794 Q1 FY2023 1,455 56.42% 363 14.09% 182 7.05% 65 2.54% 122 4.74% 64 2.46% 56 2.16% 2
Slide 30: Quarterly financial summary
7,660 7,430 7,360 8,178 8,374 (2,579) (2,672) (2,467) (4,691) (2,794) 33.67% 35.96% 33.52% 57.36% 33.37% 5,081 4,758 4,893 3,487 5,579 66.33% 64.04% 66.48% 42.64% 66.63% 4,312 4,108 4,178 3,199 4,685 56.29% 55.29% 56.77% 39.12% 55.94% 32.35% 27.29% 25.08% 24.36% 30.28% 21.48 20.46 20.81 15.93 23.33
Slide 31: Q&A
Q&A ©
Slide 32: Major Shareholders (over 5%)
▪ ▪ ▪ ▪ Major Shareholders (over 5%) ▪ National Investments Co. and group (Al-Bawaba Al- Direct & 15.46% ▪ Watania General Trading & Contracting Co.) Indirect ▪ Arzan Financial Group For Financing & Investment Direct 14.41% ▪ Gulf Cable & Electrical Industries Co. Indirect 14.41% ▪ The Public Instit
Slide 33: Analyst Coverages
ANALYST COVERAGES h House Analysts Date Target Price (KWI Rese: Jaap Meijer, MBA, CFA Janany Vamadeva 18 April 2024 2.07 Hold Arqaam Capital Elena Sanchez, CFA EFG HERMES Ahmed E-Shazly 2 May 2024 2.33 Buy
Slide 34: Awards and Certificates
AWARDS AND CERTIFICATES EUR@PEAN G INANCE Best Sustainable Corporate Governance 2023- Kuwait Outstanding Financial Leadership in Sustaining Communities- Middle East 2023 Bourse Kuwait was awarded “Best Sustainable Corporate Governance- Kuwait" by The European Boursa Kuwait won the “OUTSTANDING CONTR
Slide 35: Awards and Certificates (Cont'd)
AWARDS AND CERTIFICATES (Cont'd) Global Business Outlook Most Sustainable Practices in ESGfor 2022 Boursa Kuwaitwas awarded Most Sustainable Practices in ESG for 2022by Global Business Outlook y, middle east investor relations association Second Place in the Best Annual Report - Print Category for S
Slide 36: Contact Information
Fahad Al Besher Hist 4c 08 — Director, Investor Relations Gyolinol! Jl6.the dls p20 4 SS : Ay & 3 % STAAL 3 SERESEADALALS “. > o. ee _—_ >: i | a Website: www. boursakuwait.com.kw
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