Dubai Financial Market (DFM) - PJSC · DFM:DFM
Dubai Financial Market (DFM) - PJSC — Dubai Financial Market — H1 2016 Earnings Presentation
25 slides from Dubai Financial Market (DFM) - PJSC's earnings presentation, 2016
Slide 1: Dubai Financial Market Investor Interim Presentation 2016
Dubai Financial Market Investor Interim Presentation 2016 0
Slide 2: Disclaimer
Disclaimer This Investor Presentation has been prepared by Dubai Financial Market PJSC (“DFM” or the “Company”) for investors, solely for informational purposes. The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does
Slide 3: DFM at a Glance
DFM at a Glance Leading Exchange in the MENA Region Listings (30-June-2016) AED 328bn 60 88 Market Capitalization Companies Listed on the DFM Bonds/Sukuks Listed Established in 2000 as a government on the DFM / Nasdaq Dubai owned exchange Provides investors and market participants with the best
Slide 4: The UAE Benefits from Strong Demographic and Macroeconomic Fundamentals
The UAE Benefits from Strong Demographic and Macroeconomic Fundamentals 1 Second Largest Economy in the MENA 2 3 …With High GDP Growth… …And a Growing Population… Region… 2015 Nominal GDP ($bn)1 2015E-2020E Real GDP Growth (%) 2015E-2020E Population Growth (%)2 1,316 2.8% 4.1% 3.7% 2.2% 3.2% 3.1% 1.
Slide 5: Dubai Growth Driven by a Well-Diversified Economy
Dubai Growth Driven by a Well-Diversified Economy Strong Dubai GDP Growth… Commentary 4.4% 4.6% 4.5% Well diversified economy based on international trade, banking and finance, 3.8% tourism, information technology and infrastructure 3.3% Strong growth in the non-hydrocarbon sector Regional wea
Slide 6: DFM Diversified Product Offering
DFM Diversified Product Offering Diversified product offering including trading of equity and debt instruments, and financial services to investors and market participants Listing Trading Post Trading Equities REITs Membership (Access and use of DFM trading platform) Settlement Sukuks / Bo
Slide 7: Operational Highlights
Operational Highlights Market Capitalization (AEDbn) Total Traded Value (AEDbn) 323 328 308 260 382 201 182 184 160 151 70 49 69 32 2010 2011 2012 2013 2014 2015 H1 2016 2010 2011 2012 2013 2014 2015 H1 2016 ADTV (AEDm) Market Velocity1 (%) 1,520 118.2% 61.6% 49.1% 642 603 538 34.7% 26.5% 278 194 17
Slide 8: DFM Presents Significant Growth Opportunities
DFM Presents Significant Growth Opportunities Equity Market Capitalisation to GDP1 Number of Listed Companies 145% 3,509 126% 121% 2,403 2,324 1,873 1,797 1,747 84% 79% 74% 1,081 771 72% 68% 615 383 57% 358 252 172 68 60 43 Deutsche Shenzhen SE LSE Hong Kong DFM ADX NYSE Qatar Stock Johannesburg Sha
Slide 9: Strong and Growing Foreign Investor Base
Strong and Growing Foreign Investor Base Foreign Investors’ Trading Share DFM continues its efforts, in co-operation with issuers and investment banks, to attract foreign investors’ interest in DFM listed companies AED 1413m Net buying by UAE was classified as a global emerging market in foreign
Slide 10: Increasing Institutional Investor Base
Increasing Institutional Investor Base Commentary Share Ownership Split The DFM has attracted increasing institutions investor base, in light of the sound national economy and the continuous improvement of listed companies’ performance Retail 21.3 Institutional investors own 78.7% of the stock
Slide 11: DFM is Not Yet Reflecting the Diversity in Dubai's Economy
DFM is Not Yet Reflecting the Diversity in Dubai’s Economy Trade, manufacturing, construction, transport and real estate are the biggest contributors of Dubai’s economy Unlike the economy, the DFM market is concentrated, in financials, real estate and construction. These sectors collectively rep
Slide 12: Strategic Initiatives Focusing on IPOs
Strategic Initiatives Focusing on IPOs DFM continues to maintain its attractiveness as the first choice as a listing venue for UAE based companies Active collaborations with private joint stock companies and family businesses to promote IPOs and attract new listings 2009 2011 2014 2015 Research
Slide 13: Highlights of 2015 Strategic Achievements
Highlights of 2015 Strategic Achievements Heightened Support to Companies A Solid Market Infrastructure In Transforming DFM and Enhancing Communication Line With International Best Practices into a “SMART Borse” with International Investors Implementing the enhanced “Pre Closing IPO Payments thr
Slide 14: Actively Promoting the DFM
Actively Promoting the DFM International Investor Roadshows in London & New York London Roadshow – Apr-2015 New York Roadshow – Oct-2015 15 91 60 $3 Trillion 12 180 46 $1 Trillion Companies One-on-One Investors Combined Companies One-on-One Investors Combined Presented Meeting Investors’ AUM Present
Slide 15: DFM Stock Trading Activity
DFM Stock Trading Activity DFM is One of the Most Liquid Stocks on the Exchange 82.8 52.3 29.0 26.3 21.1 12.2 13.1 11.4 4.0 2.0 1.1 1.4 2012 2013 2014 2015 H1 2015 H1 2016 Average Traded Volume (m) Average Traded Value (AEDm) Source : DFM Analytics 14
Slide 16: Financial Highlights
Financial Highlights The decrease in trading activity has had an impact on the revenue for H1 2016, DFM continues to provide advanced and innovative products/services as part of its strategy targeting the diversification of revenue streams and increase in non- trading commission income Total Reven
Slide 17: H1 2016 Financial Performance
H1 2016 Financial Performance The slowdown in trading activity during the first half of 2016 has overshadowed the revenue and profit of the DFM Company The DFM General Index has been one of the best performing amongst leading indices globally advancing more than 5% during the first half of the y
Slide 18: Stable Total Expense Base
Stable Total Expense Base Breakdown in AED Cost to Income 43.2% Ratio1 19.8% 38.7% 199.5 187.4 177.6 62.4 62.4 62.4 35.1% 33.3% 31.3% 32.2% Amortization of 1.1 37.4%2 Intangible Assets Interest 5.8 1.0 9.4 Expense 1.0 6.5 7.0 7.9 12.4 Depreciation 97.9 Rent 7.6 13.3 11.2 24.5 Maintenance 17.7 Expens
Slide 19: Healthy Balance Sheet Supporting Attractive Dividend Pay-out
Healthy Balance Sheet Supporting Attractive Dividend Pay-out Cash generative business model Strong balance sheet with no leverage and significant financial investments Dividends (AEDm) Dividend 0.05 0.07 0.05 AED Per Share 560 400 400 Selected Balance Sheet Items (AEDm) 2013 2014 2015 30- Jun-16
Slide 20: Strong Balance Sheet with Significant Financial Assets
Strong Balance Sheet with Significant Financial Assets Financial Assets Financial Assets Breakdown (AEDm) 30-Jun-2016 Sukuk Cash & Cash Equivalents 6% Cash and Cash Equivalents 484 15% Managed Funds Investment Deposits 1,925 8% Investment Deposits Less than 3 Months 660 Equity 60% 10% Up to 1 Y
Slide 21: Appendix
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Slide 22: DFM Consolidated P&L
DFM Consolidated P&L (AEDm) 2013 2014 2015 H1 2015 H1 2016 Trading Commission Fees 341.6 806.0 335.2 226.1 153.7 Brokerage Fees 13.2 15.0 19.4 9.3 10.3 Clearing, Settlement and Depositary Fees 41.0 55.9 34.8 21.2 17.4 Listing and Market Data Fees 7.1 8.8 9.3 4.8 4.5 Other Fees 2.1 3.3 4.5 3 3.1 Oper
Slide 23: Relationship with Nasdaq Dubai & Regulatory Authority
Relationship with Nasdaq Dubai & Regulatory Authority Regulatory SCA DFSA Authorities (UAE Regulations) (International Regulations) ADX DFM Nasdaq Dubai Stock Exchanges 33.33% Ownership 79.62% Structure 100% 66.67% 20.38% Public Stake 22
Slide 24: New Company Law Supporting IPO Market
New Company Law Supporting IPO Market Requirements Old New Offer Size Not be less than AED 10 million Not be less than AED 30 million Founders Minimum 10 founding shareholders Minimum 5 founding shareholders Founders hold not less than 20% and not more than 45% of Founders hold not less
Slide 25: Investor Relations Contacts
Investor Relations Contacts For Additional Investor Relations Information Investor Relations Website: www.dfm.ae/dfm-investor-relations Investor Relations Contacts: Racha El Hassan Chamut Head of Investor Relations Tel: +971 4 305 5650 rchamut@dfm.ae Areej Al Saeed Manager Chairman's Office Tel: +97
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