Bse Ltd. · NSE:BSE
Bse — Investor Presentation (November 2018)
48 slides from Bse's investor presentation, Nov 2, 2018
Slide 1: Experience the New BSE - Filing Cover Letter
3SE EXPERIENCE THE NEW Date: November 2, 2018 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 November 2018 Dear Sir/Madam, Wit
Slide 2: BSE Limited Investor Presentation – November 2018
BSE Limited 1 Investor Presentation – November 2018
Slide 3: Disclaimer
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 significa
Slide 4: Index
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
Evolution Of The Exchange - Key Milestones 1875 To 1995 1996 To 2005 2006 To 2010 2011 To 2014 2015 To 2016 2017 To 2018 •The Native Share & •Equity Derivatives •Currency Derivatives •Launch of Currency •BSE celebrated its •Hon’ble Prime Stock Broker's introduced Introduced Derivatives (BSE CDX) 140
Slide 6: BSE Group
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 Investments
Slide 7: Shareholding Pattern
Shareholding Pattern SOME KEY SHAREHOLDERS SHAREHOLDING PATTERN Deutsche Boerse AG 4.92% Life Insurance Corporation of India 4.88% Siddharth Balachandran 3.42% IDFC Group 2.86% Others 44% State Bank of India 2.42% Trading Member 23% GKFF Ventures 2.37% Caldwell India Holding Inc. 2.27% Jupiter India
Slide 8: Experienced Board of Directors
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 Direct
Slide 9: Experienced Management Team
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 worked at
Slide 10: Index
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
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 • Equity Cash • IPO ▪ OTC Corporate ▪ Trading ▪ Clearing and • Small & Medium ▪ Ord
Slide 12: Global Ranking
Global Ranking Highest globally with Listed Companies 5,071* Number of listed entities Largest globally with Currency Options 435 million* Number of Contracts Traded Third largest globally with Currency Futures 340 million* Number of Contracts Traded Electronic 11th largest globally with Book 236 mi
Slide 13: Membership
Membership Equity Cash Currency Derivatives Members Members 1364 527 535 540 516 1361 485 410 1353 1354 1351 1344 FY14-15 FY15-16 FY16-17 FY17-18 Q1FY19 Q2FY19 FY14-15 FY15-16 FY16-17 FY17-18 Q1FY19 Q2FY19 Continuous interaction with members in normal course of business and through various programs
Slide 14: Business – Marketshare
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 75% 86% 79% 47% 60% 62% 66% 36% 37% 9% Companies/ Currency Interest Rate Debt/ Fixed Equity Cash StAR MF@
Slide 15: Business - Equity Markets
Business - Equity Markets Average Daily Turnover - Equity (₹ million) Transaction Charges Income - Equity (₹ million) 1,442 CAGR 21% 44,023 40,252 1,174 35,179 32,993 32,055 CAGR 50% 29,963 20,783 531 485 286 226 218 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19 FY13-14 FY14-15 FY15-16
Slide 16: Business – Currency Derivatives
Business – Currency Derivatives Average Daily Turnover - Currency Derivatives (₹ million) 30,162 80,191 1,14,212 1,31,060 1,82,891 3,14,177 3,38,878 CAGR 21% 1,92,285 1,84,586 1,00,932 4,012 37,751 56,356 25,272 1,29,592 1,46,593 26,150 76,461 81,959 54,919 74,704 FY13-14 FY14-15 FY15-16 FY16-17 F
Slide 17: Business – Currency Derivatives
Business – Currency Derivatives Open Interest (End of Year) - Currency Derivatives 41,532 6,64,668 12,87,841 15,98,346 8,97,944 12,87,083 11,68,931 5,30,152 3,87,638 2,80,721 3,83,186 2,30,258 1,90,275 10,68,194 10,06,362 9,00,203 7,85,745 5,974 6,67,686 4,74,393 35,558 FY13-14 FY14-15 FY15-16 FY16-
Slide 18: Business – Interest Rate Futures
Business – Interest Rate Futures Average Daily Turnover - Interest Rate Futures Average Daily Number of Contracts - Interest (₹ million) Rate Futures 9,251 46,881 CAGR 97% CAGR 96% 5,288 25,559 25,958 4,716 4,856 23,503 3,788 20,280 1,761 8,543 629 3,135 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q
Slide 19: Business - Mutual Fund Distribution Platform-StAR MF
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 • Completely digit
Slide 20: Business - Mutual Fund Distribution Platform-StAR MF (cont’d)
Business - Mutual Fund Distribution Platform-StAR MF (cont’d) Some Key Total Transaction value - Mutual Fund (₹ million) Transacted value through BSE Star MF - Figures SchemeType 11,78,237 Orders Processed 2,22,460 ~ 3.2 million 1,88,600 (Sep 2018) CAGR 114% 1,68,790 1,72,980 7,43,014 4,42,346 9,1
Slide 21: Business – Services to Corporates
Business – Services to Corporates Securities Listed (as at year-end) Listing Fees (₹ million) 484 958 1,446 1,382 1,776 512 472 5,911 5,834 496 433 340 5,624 5,629 332 5,577 1,280 1,013 1,042 184 115 111 626 300 397 361 5,363 5336 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19 Annual Listng
Slide 22: Business – Small & Medium Enterprises (SME)
Business – Small & Medium Enterprises (SME) No. of Companies Listed (As on End of Period) Listing Related Income (₹ in million) 258 235 39 CAGR 28% 178 131 23 20 18 89 14 43 9 7 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 YTDFY19 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19 Total Turnover (
Slide 23: Preferred Capital Raising Platform
Preferred Capital Raising Platform Since April 2015, capital raised $ 3.88 billion During Q2 FY19, through BSE [₹ 0.17 trillion] BSE listed $ 30 billion Raised through BSE’s electronic 504 [₹ 2.17 trillion] (till Sep 30, 2018) bond platform during H1 FY19 Privately Placed Debt instruments During FY
Slide 24: Business – India International Exchange at GIFT City
Business – India International Exchange at GIFT City Commenced Operations from 16th January, 2017 Index Derivatives Sensex, India 50 Futures & Options Indian Stock 107 stocks including Reliance Industries Limited, HDFC Bank Limited, Axis Bank Limited, Infosys Futures Limited, Tata Consultancy Servic
Slide 25: Business – India International Exchange at GIFT City (cont’d)
Business – India International Exchange at GIFT City (cont’d) Particulars INDIA INX Value of MTN Programme Established USD 30,845 Million No. of MTN Programme Established 5 Value of Bonds Listed USD 6,299 Million No. of Bonds Listed 13 Market Share – MTN Market Share – Bonds Listed 100% 95% Highest
Slide 26: Business – India International Exchange at GIFT City (cont’d)
Business – India International Exchange at GIFT City (cont’d) (₹ in Million) INX Commodity INX Index Derivatives Total Turnover Derivatives Total Turnover 16,864 35,256 11,865 INX Total Turnover 17,015 6,827 52,274 8,296 3,247 3,412 1,721 1,276 29,043 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q2FY18 Q3FY18
Slide 27: Business – India International Exchange at GIFT City (cont’d)
Business – India International Exchange at GIFT City (cont’d) INX Index Derivatives INX Commodity Derivatives Contracts No. Contracts No. 29,74,380 4,45,013 2,95,604 INX Total Contracts No. 15,21,314 34,39,843 1,60,027 7,53,046 79,801 3,17,376 42,153 1,24,227 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 18,38
Slide 28: Business - Data Business Products
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 Bulletin S
Slide 29: Index
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
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 Entered into strategic technology alliance with Eurex in Mar 2013, Co-location services and high-speed Ethernet connections so as to de
Slide 31: Sponsored Market Access
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 Service prov
Slide 32: BOLT PLUS ON WEB (BoW)
BOLT PLUS ON WEB (BoW) Application for Desktop & Mobile One Window with Multiple Utilities Trading Segments For Connectivity • Single window for Multi • BSE • Equity – F&O • Dealers • Leased Line Exchange Segments with all – Currency – • NSE • Investors • Internet Asset Class. IRF - OFS – • MCX • Ad
Slide 33: BEST - BSE Electronic Smart Trader – Hosted Trading Suite
BEST- BSE ELECTRONIC SMART TRADER – HOSTED 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, MF) •M
Slide 34: Index
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 Initiatives & Growth Drivers
Recent Initiatives & Growth Drivers Recent Initiatives About Enablers Highlights New electronic bidding platform Introduction of appropriate fee * Reliance Industries Limited for raising debt by any entity structure based on the growth successfully raised Rs. 3500 BSE-Bond Platform over ₹ 5 billion
Slide 36: Recent Initiatives & Growth Drivers (cont’d)
Recent Initiatives & Growth Drivers (cont’d) Recent Initiatives About Highlights Board of SEBI has approved Inter-operability may increase liquidity across segments Inter-operability the inter-operability among among Clearing Clearing Corporations on all products except commodity Corporations deriva
Slide 37: Recent Initiatives & Growth Drivers (cont’d)
Recent Initiatives & Growth Drivers (cont’d) Alliances About Highlights BSE has entered into an a The partnership will strengthen BSE's and LME's global London Metal licensing agreement with the collaboration and support opportunities that will mutually London Metal Exchange (LME) benefit the exchan
Slide 38: Macro-economic Factors – Underpenetrated Indian Markets
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 has room for Scope for Market C
Slide 39: Macro-economic Factors – Underpenetrated Indian Markets
Recent Initiatives & Growth Drivers (cont’d) Macro-economic Factors – Underpenetrated Indian Markets Global Inflow of Funds Demographic Dividend With 7-8% GDP growth rate, India is the preferred investment destination % of India’s total population in FPIs granted permanent registration compared
Slide 40: Index
Index 1 Overview 1 2 Business 3 State-of-the-art Infrastructure and Technology 4 Recent Initiatives & Growth Drivers 5 Performance Highlights 39
Slide 41: Integrated Business Model
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 Linked to 1 Transaction Charges Market Activity Directly proportional to marke
Slide 42: Standalone Profit & Loss
Standalone Profit & Loss Operational Income Half Year Ending (₹ in million) 30-Sep-16 30-Sep-17 30-Sep-18 Securities Services 614 805 695 Services to Corporates 802 1,008 1,104 Data Dissemination Fees 123 124 147 Revenue from Operations 1,539 1,937 1,946 Income From Investments and Deposits 1,020 1,
Slide 43: Standalone Profit & Loss (cont’d)
Standalone Profit & Loss (cont’d) Half Year Ending (₹ in million) 30-Sep-16 30-Sep-17 30-Sep-18 Total Income 2,758 3,197 2,986 Employee Expenses 343 364 419 Technology Cost & Technology Program 518 625 638 Admin & Other Expenses* 554 484 628 EBITDA 1,344 1,724 1,301 Depreciation & Amortization 220 1
Slide 44: Consolidated Profit & Loss
Consolidated Profit & Loss Steady increase in Operational Income Half Year Ending (₹ in million) 30-Sep-16 30-Sep-17 30-Sep-18 - Transaction Charges 485 682 596 - Treasury Income on Clearing and Settlement Funds 175 199 164 Others 136 134 117 Securities Services 796 1,015 877 Services to Corporates
Slide 45: Consolidated Profit & Loss (cont’d)
Consolidated Profit & Loss (cont’d) Half Year Ending (₹ in million) 30-Sep-16 30-Sep-17 30-Sep-18 Total Income 2,965 3,308 3,282 Employee Expenses 504 588 680 Technology Cost & Technology Program 456 546 570 Other Expenses* 647 614 770 EBITDA 1,358 1,560 1,262 Depreciation & Amortization 227 210 235
Slide 46: Financial Overview – Consolidated
Financial Overview – Consolidated Key Performance Indicators (₹ in million) 16,000 26% 21% 20% 36% 34% 31% 25% 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 4,000 10% 2,206 2,373 1,352 1,297 1,329 1,642 1,641 -10% 2,000 515 407 - -30% FY13-14 FY14-15 FY15-16 FY1
Slide 47: Financial Overview (cont’d)
Financial Overview (cont’d) Consolidated Net-worth (₹ million) 31,344 30,789 29,256 26,624 24,609 25,229 23,708 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY18-19 Q2 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 40% 20
Slide 48: Thank You
THANK YOU INVESTOR RELATIONS CONTACT : Yatin Padia Head – Investor Relations +91 22 2272 8516 [email protected] 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 nor any