Bse Ltd. · NSE:BSE
Bse — Investor Presentation (February 2019)
50 slides from Bse's investor presentation, Feb 1, 2019
Slide 1: Cover letter to National Stock Exchange
Public 35E EXPERIENCE THE NEW Date: February 1, 2019 To, Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1 G Block, Bandra-Kurla Complex, Bandra (E) Mumbai — 400 051 Symbol: BSE ISIN: INE118H01025 Sub: Investor Presentation February 2019 Dear Sir/Mad
Slide 2: BSE Limited Investor Presentation – February 2019
Public BSE Limited 1 Investor Presentation – February 2019
Slide 3: Disclaimer
Public Disclaimer This presentation and the discussion may contain certain words or phrases that are forward - looking statements, which are tentative, based on current expectations of the management of BSE Limited or any of its subsidiaries and associate companies (“BSE”).Actual results may vary si
Slide 4: Index
Public Index 1 Overview 1 2 Business 3 State-of-the-art Infrastructure and Technology 4 Recent Initiatives & Growth Drivers 5 Performance Highlights 3
Slide 5: Evolution Of The Exchange - Key Milestones
Public Evolution Of The Exchange - Key Milestones 1875 To 2005 2006 To 2010 2011 To 2014 2015 To 2016 2017 To 2018 •The Native Share & Stock •Currency Derivatives •Launch of Currency •BSE celebrated its 140th •Hon’ble Prime Minister of Broker's Association Introduced Derivatives (BSE CDX) Foundation
Slide 6: BSE Group
Public BSE Group BSE GROUP BSE LTD. • NSE Symbol: BSE • BloombergSymbol : BSE IN • ReutersSymbol: BSEL.NS DOMESTIC IFSC-GIFT CITY Central Counter Party Exchange Central Counter Party Central Securities Exchange (CCP ) (CCP) Depository (CSD) 100% 100% 100% 100% 24% India International India BSE Inves
Slide 7: Shareholding Pattern
Public Shareholding Pattern SOME KEY SHAREHOLDERS SHAREHOLDING PATTERN Deutsche Boerse AG 4.92% Life Insurance Corporation of India 4.88% Siddharth Balachandran 3.63% IDFC Group 2.75% Others 47% Trading State Bank of India 2.42% Member 22% GKFF Ventures 2.32% Caldwell India Holding Inc. 2.27% Banks
Slide 8: Experienced Board of Directors
Public Experienced Board of Directors On BSE On BSE Board Name Bio Name Bio Board since since Promoter and Managing S Ravi Vikramajit Previously, acting Chief Justice – Partner of Ravi Rajan & Co., Chairman and Public 2016 Sen High Court of Karnataka and later Chartered Accountants 2016 Interest
Slide 9: Experienced Management Team
Public Experienced Management Team Name Since Bio Name Since Bio Prior to joining BSE, Credit Analysis & Research Ltd. as B Tech in Mechanical Engineering from Joint General Manager (Accounts),CFO at Multi IIT Bombay and a PGDM from IIM Commodity Exchange of India Limited and has also Kolkata wo
Slide 10: Index
Public Index 1 Overview 1 2 Business 3 State-of-the-art Infrastructure and Technology 4 Recent Initiatives & Growth Drivers 5 Performance Highlights 9
Slide 11: Diversified Lines of Business
Public Diversified Lines of Business Revenue Business Listing Business Market Business Data Business Primary Market BSE Star Mutual Information Secondary Market New Debt Segment Membership Post Trade Funds platform Products • IPO • Equity Cash ▪ OTC Corporate ▪ Trading ▪ Clearing and ▪ Market Data •
Slide 12: Global Ranking
Public Global Ranking Highest globally with Listed Companies 5,066* Number of listed entities Largest globally with Currency Options 560 million# Number of Contracts Traded Third largest globally with Currency Futures 455 million# Number of Contracts Traded Electronic 11th largest globally with Book
Slide 13: Membership, Investor Education Programs, Promote Algorithmic Traders
Public Membership Equity Cash Currency Derivatives Commodity Derivatives Members Members Members 1353 1361 1364 1354 1355 Commodity Derivatives 541 segment operational from 516 527 485 October 01, 2018. 410 As on January 22, 2019 : • 200 trading members • 27 clearing members FY14-15 FY15-16 FY16-17
Slide 14: Business – Marketshare
Public Business – Marketshare Red Ocean Businesses Blue Ocean Businesses Established leader in Listing related Market leadership in Blue Ocean Businesses Business. Gaining share in Currency Derivatives 74% 90% 77% 72% 44% 59% 57% 32% 8% 19% Companies/ Currency Interest Rate Debt/ Fixed Equity Cash S
Slide 15: Business - Equity Markets
Public Business - Equity Markets Average Daily Turnover - Equity (₹ million) Transaction Charges Income - Bifurcation (₹ million) CAGR 21% 44,023 43,028 40,252 35,179 286 485 531 1,174 1,442 1,035 614 29,963 31,324 20,783 79 95 28 42 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 9M FY18 9M FY19 75 747 6
Slide 16: Business – Currency Derivatives
Public Business – Currency Derivatives Average Daily Turnover - Currency Derivatives (₹ million) 30,162 80,191 1,14,212 1,31,060 1,82,891 1,72,707 3,13,840 CAGR 57% 1,75,644 1,00,932 99,734 37,751 56,356 25,272 1,38,196 4,012 76,461 74,704 81,959 72,973 26,150 54,919 FY13-14 FY14-15 FY15-16 FY16-1
Slide 17: Business – Currency Derivatives
Public Business – Currency Derivatives Open Interest (End of Year) - Currency Derivatives 41,532 6,64,668 12,87,841 15,98,346 8,97,944 10,38,281 16,10,602 5,30,152 6,19,621 3,87,638 2,30,258 4,75,898 1,90,275 10,68,194 5,974 9,00,203 9,90,981 4,74,393 6,67,686 5,62,383 35,558 FY13-14 FY14-15 FY15-16
Slide 18: Business – Interest Rate Futures
Public Business – Interest Rate Futures Average Daily Turnover - Interest Rate Futures Average Daily Number of Contracts - (₹ million) Interest Rate Futures 9,251 46,881 8,473 41,947 CAGR 97% CAGR 96% 25,559 5,288 23,503 4,716 21,148 3,970 8,543 1,761 3,135 629 FY13-14 FY14-15 FY15-16 FY16-17 FY
Slide 19: Business - Mutual Fund Distribution Platform-StAR MF
Public Business - Mutual Fund Distribution Platform-StAR MF PLATFORM FEATURES CONNECTIVITY & USPs • Completely digital- Demat and Non-Demat /Mutual • Unique overnight investments framework Fund transactions, while facilitating the benefits of Physical • Multi-mode of platform access mode • Completel
Slide 20: Business - Mutual Fund Distribution Platform-StAR MF (cont’d)
Public Business - Mutual Fund Distribution Platform-StAR MF (cont’d) Total Transaction value - Mutual Fund (₹ million) Transacted value through BSE Star MF – Some Key SchemeType (₹ million) Figures 11,78,237 5,61,370 5,68,860 11,37,439 Orders Processed CAGR 114% 3,73,320 3,72,950 ~ 3.3 million 7,8
Slide 21: Business – Services to Corporates
Public Business – Services to Corporates Annual Listing Fee (₹ million) Book Building Fees (₹ million) 1,280 331 1,114 1,013 1,042 975 244 626 143 112 101 300 74 55 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 9M FY18 9M FY19 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 9M FY18 9M FY19 Listing processing and
Slide 22: Business – Small & Medium Enterprises (SME)
Public Business – Small & Medium Enterprises (SME) No. of Companies Listed Listing Related Income (₹ in million) 280 235 39 CAGR 28% 178 27 131 23 24 20 18 89 14 43 31/3/14 31/3/15 31/3/16 31/3/17 31/3/18 31/12/18 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 9M FY18 9M FY19 No. of Companies Migrated to
Slide 23: Preferred Capital Raising Platform
Public Preferred Capital Raising Platform Since April 2015, capital raised $ 30.28 billion During Q3 FY19 through BSE [₹ 2.15 trillion] BSE listed $ 31.47 billion Raised through BSE’s electronic 381 [₹ 2.24 trillion] (till Dec 31, 2018) bond platform during 9M FY19 Privately Placed Debt instruments
Slide 24: Business – India International Exchange at GIFT City
Public Business – India International Exchange at GIFT City Commenced Operations from 16th January, 2017 Index Derivatives Sensex, India 50 Futures & Options Indian Stock Futures 107 stocks including Reliance Industries Limited, HDFC Bank Limited, Axis Bank Limited, Infosys Limited, Tata Consultancy
Slide 25: Business – India International Exchange at GIFT City (cont’d)
Public Business – India International Exchange at GIFT City (cont’d) Particulars INDIA INX Value of MTN Programme USD 38,845 Established Million Market Share – 100% MTN No. of MTN Programme Established 7 Value of Bonds Listed USD 12,870 Million Market Share – 98% Bonds Listed No. of Bonds Listed 29
Slide 26: Business – India International Exchange at GIFT City (cont’d)
Public Business – India International Exchange at GIFT City (cont’d) (₹ in Million) INX Index Derivatives Total INX Commodity INX Total Turnover Turnover Derivatives Total Turnover 37,573 52,274 52,666 35,256 16,864 15,093 11,865 29,043 17,015 6,827 15,132 8,296 3,247 6,670 3,412 Q3FY18 Q4FY18 Q1FY1
Slide 27: Business – India International Exchange at GIFT City (cont’d)
Public Business – India International Exchange at GIFT City (cont’d) INX Index Derivatives INX Commodity Derivatives INX Total Contracts No. Contracts No. Contracts No. 37,43,573 33,60,581 4,45,013 34,39,843 29,74,380 3,82,992 2,95,604 18,38,223 15,21,314 1,60,027 7,53,046 9,13,939 79,801 3,17,376 3
Slide 28: Business - Data Business Products
Public Business - Data Business Products Corporate End of day or Market Data Data Historical Equity Level 1 – Real-time & 1 Corporate Announcement Quotation files minute Snapshots Equity Level 2 – Real-time Financial Results Annual report Indices – Real-time & 1 minute Shareholding Pattern Daily Bul
Slide 29: Index
Public Index 1 Overview 1 2 Business 3 State-of-the-art Infrastructure and Technology 4 Recent Initiatives & Growth Drivers 5 Performance Highlights 28
Slide 30: State-of-the-art Infrastructure & Technology
Public State-of-the-art Infrastructure & Technology Technology is a key component of operations and business strategy and we regard it as an important component of success Driven by Eurex new generation trading system, the T7, for Co-location services and high-speed Ethernet connections trading in v
Slide 31: Sponsored Market Access
Public Sponsored Market Access Implementation of ‘Sponsored Market Access’ (SMA) at Co-location • SMA is a software distribution model in which applications are hosted by a service provider and made available to customers over a network. • Free of cost rack space is allocated by BSE to the SMA Servi
Slide 32: BOLT PLUS ON WEB (BoW)
Public BOLT PLUS ON WEB (BoW) Application for Desktop & Mobile One Window with Multiple Utilities • Single window for Multi Trading Segments For Connectivity Exchange Segments with all • BSE • Equity, OFS, • Dealers • Leased Line Asset Class. • NSE OTB, SLB, • Investors • Internet • Combined Market
Slide 33: BEST - BSE Electronic Smart Trader – Hosted Trading Suite
BEST- BSE ELECTRONIC SMART TRADER – HPublic OSTED TRADING SUITE (Thomson Reuters Omnesys NEST hosted trading platform ) SingleWindow with Multiple Utilities Exchanges/Segments Users Features •BSE (Equity, Equity Derivatives, Currency •Admin •Real time Risk Management Derivatives, SLB, OFS, IPO, OTB,
Slide 34: Index
Public Index 1 Overview 1 2 Business 3 State-of-the-art Infrastructure and Technology 4 Recent Initiatives & Growth Drivers 5 Performance Highlights 33
Slide 35: Recent Developments, Initiatives & Growth Drivers – Mutual Funds
Public Recent Developments, Initiatives & Growth Drivers Developments / Initiatives Growth Drivers BSE Star MF Platform Mutual • Total transaction value during the • Continuing growth of mutual fund distribution nine Funds month ending Dec 31, 2018 is ₹ network. Number of distributors across country
Slide 36: Recent Developments, Initiatives & Growth Drivers – India INX
Public Recent Developments, Initiatives & Growth Drivers Developments / Initiatives Growth Drivers India INX International Exchange at GIFT City IFSC • Cumulative trading volume has crossed • Regulatory changes to further facilitate participation USD 161.30 billion with 10.7+ million of at the Inter
Slide 37: Recent Developments, Initiatives & Growth Drivers – Commodity Segment
Public Recent Developments, Initiatives & Growth Drivers Developments / Initiatives Growth Drivers Commodity Segment Mutual • Commenced from Oct 1, 2018 • Digitization of warehousing receipts over time. Funds • BSE has become 2nd largest commodity • Standardization of contracts across exchanges. exc
Slide 38: Recent Developments, Initiatives & Growth Drivers – Clearing Interoperability
Public Recent Developments, Initiatives & Growth Drivers Developments / Initiatives Growth Drivers Inter-operability among Clearing Corporations • Inter-operability among clearing • Enable efficient utilization of margin and capital corporations would be resources. operationalized from Jun 1, 2019 f
Slide 39: Recent Developments, Initiatives & Growth Drivers – BSE Startups, BSE Direct
Public Recent Developments, Initiatives & Growth Drivers Developments / Initiatives Growth Drivers BSE Startups • BSE Startups’, a new platform for • MOU’s signed with two venture capital firms to entrepreneurs to list their startups enable BSE to further incentivise the startup firms in launched on
Slide 40: Macro-economic Factors – Underpenetrated Indian Markets
Public Recent Initiatives & Growth Drivers (cont’d) Macro-economic Factors – Underpenetrated Indian Markets GDP Factor & India’s Credit Rating Correlated to market capitalization / activity which in turn is linked to GDP Compared to other geographies, Market Cap / GDP ratio (2018) has Scope for Ma
Slide 41: Macro-economic Factors – Underpenetrated Indian Markets
Public Recent Initiatives & Growth Drivers (cont’d) Macro-economic Factors – Underpenetrated Indian Markets Global Inflow of Funds Demographic Dividend With a 7-8% GDP growth rate, India is the among the most preferred investment destinations % of India’s total population in Rapid Improvement in
Slide 42: Index
Public Index 1 Overview 1 2 Business 3 State-of-the-art Infrastructure and Technology 4 Recent Initiatives & Growth Drivers 5 Performance Highlights 41
Slide 43: Integrated Business Model
Public Integrated Business Model • Multiple contact points with members and market participants provides the ability to generate revenue from multiple levels of the business Primary Trading Clearing & Settlement Distribution To an extent 1 Transaction Charges linked to Linked to market activity
Slide 44: Standalone Profit & Loss
Public Standalone Profit & Loss Operational Income (₹ in million) Nine Months Ending 31-Dec-16 31-Dec-17 31-Dec-18 Securities Services 977 1,314 997 Services to Corporates 1,157 1,586 1,599 Data Dissemination Fees 183 188 225 Revenue from Operations 2,317 3,088 2,821 Income From Investments and Depo
Slide 45: Standalone Profit & Loss (cont’d)
Public Standalone Profit & Loss (cont’d) (₹ in million) Nine Months Ending 31-Dec-16 31-Dec-17 31-Dec-18 Total Income 4,036 4,756 4,549 Employee Expenses 513 543 633 Technology Cost & Technology Program 805 958 966 Admin & Other Expenses* 804 742 1,007 EBITDA 1,914 2,513 1,943 Depreciation & Amortiz
Slide 46: Consolidated Profit & Loss
Public Consolidated Profit & Loss Steady increase in Operational Income (₹ in million) Nine Months Ending 31-Dec-16 31-Dec-17 31-Dec-18 - Transaction Charges 777 1,129 852 - Treasury Income on Clearing and Settlement Funds 261 299 235 Others 210 202 171 Securities Services 1,248 1,630 1,258 Services
Slide 47: Consolidated Profit & Loss (cont’d)
Public Consolidated Profit & Loss (cont’d) (₹ in million) Nine Months Ending 31-Dec-16 31-Dec-17 31-Dec-18 Total Income 4,338 5,036 5,054 Employee Expenses 767 881 1,037 Technology Cost & Technology Program 701 849 857 Admin & Other Expenses* 959 936 1,286 EBITDA 1,911 2,370 1,874 Depreciation & Amo
Slide 48: Financial Overview – Consolidated
Public Financial Overview – Consolidated Key Performance Indicators (₹ in million) 16,000 26% 21% 20% 36% 34% 35% 28% 110% 14,000 90% 12,000 70% 10,000 50% 8,000 6,701 6,989 6,248 6,183 30% 6,000 5,298 5,036 5,054 4,000 10% 2,206 2,373 1,752 1,352 1,297 1,329 1,423 -10% 2,000 - -30% FY13-14 FY14-15
Slide 49: Financial Overview (cont’d)
Public Financial Overview (cont’d) Consolidated Net-worth (₹ million) 31,344 31,484 28,705 26,624 24,609 25,229 23,708 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 9M FY17-18 9M FY18-19 Dividend per share (₹) & Pay-out Ratio 80 124% 140% 70 120% 60 93% 95% 87% 100% 50 74% 66% 36.0 80% 40 28.0 60% 30 15.0
Slide 50: Thank You
Public THANK YOU INVESTOR RELATIONS CONTACT : Yatin Padia Head – Investor Relations +91 22 2272 8516 bse.ir@bseindia.com This document has been prepared exclusively for the benefit and internal use of the recipient and does not carry any right of reproduction or disclosure.Neither this document n