Nairobi Securities Exchange Plc · NSEKE:NSE
Nairobi Securities Exchange — FY2015 Earnings Presentation
30 slides from Nairobi Securities Exchange's earnings presentation, Mar 24, 2016
Slide 1: 2015 Annual Results Announcement
NAIROBI SECURITIES EXCHANGE 2015 Annual Results Announcement 24 March 2016 By Geoffrey O. Odundo Chief Executive
Slide 2: Contents
Contents 3 9 Economic Market Environment Performance 13 Financial Highlights 22 Outlook & Strategy 19 Corporate Action
Slide 3: Economic Environment
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Slide 4: 2015 Global Economic Review
2015 Global Economic Review Global growth in 2015, slowed to 2.4% from 2.6% in 2014 due to: • U.S. monetary policy tightening. Federal Reserve Committee raised the target range for the federal funds rate to 0.25% to 0.5%; • Weakening commodity prices, global trade, and capital flows; • Gradual slowd
Slide 5: 2015 Regional Economic Review
2015 Regional Economic Review GDP 5.5% 63 Listed Companies Market Capitalization: USD 26.4 Billion GDP 5.0% 16 Listed Companies $ Market Capitalization: USD 2.4 Billion GDP 6.9% 17 Listed Companies Market Capitalization: USD 11.4 Billion GDP 7.5% 7 Listed Companies Market Capitalization: USD 3.8 Bil
Slide 6: Kenya Macro Economic Environment in 2015
Kenya Macro Economic Environment in 2015 •Benchmark interest rate was raised by 300 basis points to 11.5% in mid- •Firm GDP growth at 5.5% 2015) •Inflation rose to 8% above CBK upper limit of 7.5% - + •Weakening Currency •13% depreciation in exchange rate (USD/KES) Neutral Outlook •CBR rate at 11.50
Slide 7: NSE Strategic Plan 2015-2019
NSE Strategic Plan 2015-2019 New Product • DRIVE REVENUE GROWTH AND Innovation Pillar 1 DIVERSIFICATION Technology Enhancement • BUILD REPUTATION AS A TRUSTED Our COMPANY AND AN INVESTMENT Strategic Global Best Pillar 2 DESTINATION OF CHOICE Drivers Practices • STRENGTHEN ORGANIZATIONAL CAPABILITIES
Slide 8: Market Performance 2015-2014 Comparison
Market Performance 2015-2014 Comparison Key Performance Indicators Market Indicator Jan- Dec 2014 Jan-Dec-2015 %Change NSE 20 Share Index 5,113 4,040 (20.99) NSE All Share Index (NASI) 170 145 (14.71) Market P/E Ratio 15 14 2.50 Market Capitalization (Kshs. billions) 25,668 26,482 3.17 No. of Issued
Slide 9: 2015 Achievements
2015 Achievements • Launched the Real Estate Investment Trust (REITs); • Commenced the upgrade of the NSE Automated Trading System (ATS); • Concluded the NSE organizational restructure; • Joined the UN Sustainable Stock Exchanges Initiative (UN SSE); and • Held the inaugural NSE Charity Trading Day.
Slide 10: 2015 Capital Raise Statistics
Market Performance 2015 Capital Raise Statistics CAPITAL RAISE TYPE AMOUNT (KES Millions) AMOUNT (USD Millions) IPO 0 0 REITs 3,620.00 34.81 Corporate Debt 21,576.00 207.21 Government Debt 167,654.00 1,605.77 Total Raised 192,850.00 1,847.79
Slide 11: Top Five African Stock Markets by Market Capitalisation
Market Performance Top Five African Stock Markets (Market Capitalization in USD) 2015 Market Capitalisation 2,000,000,000,000.00 Market Capitalisation (USD) 1,800,000,000,000.00 1,600,000,000,000.00 1,400,000,000,000.00 JSE - 1,200,000,000,000.00 1,845,267,556,698.58 1,000,000,000,000.00 NiSE - 800,
Slide 12: African Markets Performance
Market Performance African Markets Performance 1 Year Index 3 Years Index 5 Years Index YTD Index Exchanges Movement % Movement % Movement % Movement % Namibian Stock Exchange 8.1 19.9 66.7 19.2 Johannesborg Stock -9.9 -3.4 6.7 6.8 Exchange Dar-es-Salaam Stock -15.4 31.3 57.7 4.73 Exchange BRVM 4.2
Slide 13: 2015 Financial Highlights
2015 Financial Highlights Thank You
Slide 14: Financial Highlights: Revenue Analysis
Financial Highlights Revenue Analysis 31-Dec-15 31-Dec-14 Change Kshs (Millions) Kshs (Millions) Transactions levy 524 553 -5% Annual Listing Fees 81 78 4% Initial Listing Fees 10 8 23% Application and additional listing fee 1 2 -35% Data 27 22 23% Interest income 101 40 153% Other Income 63 119 -47
Slide 15: Growth in Total Income and Total Expenses
Financial Highlights – Income Statement Growth in Total Income Total Expenses Total Income Total Expenses 500 900 822 808 448 450 800 Kshs. Millions Kshs Millions 404 400 373 700 623 350 600 300 500 261 250 240 384 400 339 200 300 150 200 100 100 50 0 - 2011 2012 2013 2014 2015 2011 2012 2013 2014 2
Slide 16: Growth in Profit Before and After Tax
Financial Highlights – Income Statement Growth in profit before tax Growth in profit after tax Profit before tax Profit after tax 350 500 320 306 442 450 Kshs. Millions 300 Kshs. Millions 379 382 263 400 250 350 300 200 250 150 200 150 127 100 86 85 105 100 50 50 0 - 2011 2012 2013 2014 2015 2011 20
Slide 17: Financial Highlights – Income Statement
Financial Highlights – Income Statement Income Statement AUDITED GROUP RESULTS FOR THE TWELVE MONTH PERIOD ENDING 31 DECEMBER 2015 Condensed Group Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2015 2014 Variance Kshs '000 Kshs '000 Operating income 616,778
Slide 18: Balance Sheet Analysis: Assets and Equity
Financial Highlights – Balance Sheet Analysis Growth in Total Assets Growth in Shareholder Equity Total Assets Shareholders Equity 2500 2000 1775 1800 Kshs. Millions Kshs Millions 2000 1918 1600 1543 1685 1400 1500 1200 1149 1000 1000 800 731 739 600 493 430 475 500 400 200 0 0 2011 2012 2013 2014 2
Slide 19: Earnings and Dividend Per Share
Financial Highlights – Balance Sheet Analysis Earnings Per Share Growth in Dividend per share Earnings Per Share Dividend Per Share 2.50 0.60 2.13 0.49 0.50 2.00 1.75 1.57 0.40 0.38 1.50 0.33 Kshs Kshs 0.30 1.00 0.20 0.15 0.16 0.57 0.57 0.50 0.10 - - 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Slide 20: Corporate Action
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Slide 21: Corporate Action
Corporate Action 1. Proposed dividends for 2015 of Kshs 0.49 per share which is a 29% increase over the Kshs 0.38 per share paid in 2014, subject to approval at the Annual General Meeting. 2. Proposed issuance of bonus shares of 1 for every 3 shares held totaling 64.875 million shares, subject to re
Slide 22: Outlook & Strategy
2016 Economic Outlook OUTLOOK & STRATEGY
Slide 23: 2016 Economic Outlook
2016 Economic Outlook Investor interest in Kenya remains strong Economic growth drivers: Consumer services (including banking, retail and telecommunications); Urbanisation; EAC integration; Structural reforms; Investment in infrastructure, including a major new railway line; and The
Slide 24: NSE Outlook & Strategy
nairobi NSE Outlook & Strategy NSc Fea Discover Opportunity
Slide 25: NSE Outlook & Strategy: Products
NSE Outlook & Strategy Aggressive product diversification in line with global best practices. Products Expect further listings on the Main Investment Market Segment (MIMS), Growth Enterprise Market Segment (GEMS) and Real Estate Investment Trust (REITs) and shall be conducting aggressive marketing
Slide 26: NSE Outlook & Strategy: Initiatives
NSE Outlook & Strategy Initiatives Upgrade of the Automated Trading System (ATS) which began in Q3 2015. This will allow the Exchange to better support its new product and service offerings. Liquidity enhancers: Working closely with the regulator on the introduction of: Market making framework
Slide 27: Outlook & Strategy: Sustainability
Outlook & Strategy Sustainability NSE is a member of Sustainable Stock Exchanges (SSE) Initiative and is focused on enhancing corporate transparency – and ultimately performance – on ESG (environmental, social and corporate governance) issues while encouraging sustainable investment. 1. Corporate So
Slide 28: Our Sustainability Initiatives
Our Sustainability Initiatives Bell Ringing for Gender Equality and signing of Women Empowerment Principles (WEPs)
Slide 29: Our Sustainability Initiatives
Our Sustainability Initiatives Donation to Joy Children's Home SOS Children's Village-Adopt a Home Initiative
Slide 30: Q&A
Q&A
Nairobi Securities Exchange — FY2015 Earnings Presentation on 6ix