Nairobi Securities Exchange Plc · NSEKE:NSE
Nairobi Securities Exchange — H1 2017 Earnings Presentation
30 slides from Nairobi Securities Exchange's earnings presentation, Aug 22, 2017
Slide 1: Nairobi Securities Exchange 2017 Half Year Financial Results
NAIROBI SECURITIES EXCHANGE 2017 HALF YEAR FINANCIAL RESULTS (By Geoffrey O. Odundo, CE NSE) By Geoffrey Odundo; Chief Executive; NSE August, 22 2017
Slide 2: Contents
Contents Global Economic Review; 4 Achievements; 15 Africa’s Economic Review; 5 Financial Highlights; 16 Outlook & Strategy; 24 Market Performance ; 6 NSE Strategy; 14 Sustainability; 27
Slide 3: About NSE
About NSE NSE has a six decade heritage in listing equity and debt securities. It offers a world class trading facility for local and international investors looking to gain exposure to Kenya and Africa’s economic growth. NSE is playing a vital role in the growth of Kenya’s economy by encouraging sa
Slide 4: Global Economic Review
Global Economic Review World growth is expected to rise from 3.1% in 2016 to 3.5% in 2017 and 3.6% in 2018; (According to IMF) • Stronger activity and expectations of more robust global demand. • Restrictions on oil supply, have helped commodity prices recover. • Higher commodity prices have provide
Slide 5: Africa Economic Overview
Africa Economic Overview Africa is estimated to rise Africa plummeted to 1.6% in 2016 to 4.5% in 2017 3.3% 2017 Regional Projection North Africa – 3.8 4.3% East Africa – 6.7 6.4 % Southern Africa – 2.8 3.9% Central Africa – 5.0 West Africa – 5.5 1.9% Source: AEO
Slide 6: Kenya's Economic Review
Kenya’s Economic Review 2017 projected Economic growth in Kenya; The key drivers for this growth include: • Enhanced construction • Currency stability • Low inflation • Growing middle-class and rising incomes • increased public investment in energy and transportation. Challenges to our outlook; (Acc
Slide 7: Kenya's Economic Review: Elections and investment climate
Kenya’s Economic Review Elections and investment climate The bourse continued to register positive gains despite the political climate and the general election period. This is testament to the confidence that that investors have in our capitals markets. Equity Turnover – 2013 VS 2017 (Election Perio
Slide 8: Market Performance Jan-Jun 2016 vs Jan-Jun 2017
Market Performance Jan – Jun 2016 Vs Jan – Jun 2017 Comparison Key Indicators Market Indicator Jan-Jun 2016 Jan-Jun-2017 %Change NSE 20 Share Index 3,640.61 3,607.18 -1% NSE All Share Index (NASI) 140.6 152.92 9% Market P/E Ratio 12.71 14.12 11% Market Capitalization (Kshs.billions) 2,014 2,221 10%
Slide 9: Bond Turnover
Bond Turnover Jan – Jun 2016 & Jan – Jun 2017 Comparison 80.00 Billions 70.00 60.00 50.00 Turnover 40.00 Bond Turnover 30.00 2016 20.00 10.00 - Month
Slide 10: Equity Turnover
Equity turnover Jan – Jun 2016 & Jan – Jun 2017 Comparison 20.00 Billions 18.00 16.00 14.00 12.00 Turnover 10.00 8.00 Equity Turnover 2016 6.00 4.00 2.00 - Month
Slide 11: Foreign Participation
Foreign participation Jan – Jun 2016 & Jan – Jun 2017 Comparison 90% 80% 70% 60% 50% %centage 40% %Foreign 2016 30% 20% 10% 0% Month
Slide 12: NSE Share Price Jan 2017 - August 2017
NSE Share Price Jan 2017 – August 2017 30.00 28.00 26.00 24.00 22.00 20.00 Price 18.00 16.00 NSE PRICE 14.00 12.00 10.00 8.00 Month
Slide 13: 2017 Capital Raise Statistics
2017 Capital Raise Statistics CAPITAL RAISE TYPE AMOUNT (KES Millions) AMOUNT (USD Millions) 2017 2017 IPO - - REITs - - Corporate Debt 6,000 58 Government Debt 191,980 1,851 Total Raised 197,980 1,851
Slide 14: Our Strategic Agenda for 2016-2019
Our Strategic Agenda for 2016-2019 • PRODUCT PILLAR 1 DRIVE REVENUE DEVELOPMENT GROWTH AND & INNOVATION • ENHANCE DIVERSIFICATION TECHNOLOGY BUILD REPUTATION AS A TRUSTED COMPANY AND AN • GLOBAL BEST PILLAR 2 INVESTMENT DESTINATION OF Our PRACTICES CHOICE Drive • ROADSHOWS • PARTNERSHIPS • BEST TALE
Slide 15: 2017 Achievements To Date
2017 Achievements To Date • Main Launch of the M-Akiba Retail Bond • With an aim of advancing the Sustainable Development Goals, NSE Rung the Bell for Gender Equality • NSE Launched the Exchange Traded Fund (ETF) • NSE signs a Memorandum of Understanding (MoU) with (QSE) • Launch of Kenya’s Green Bo
Slide 16: 2017 Financial Highlights
2017 Financial Highlights Thank You
Slide 17: Financial Highlights: Income Statement
Financial Highlights Income Statement Description 6 Months Ended 30-06-2017 6 Months Ended 30-06-2016 Variance 2017 Actual Vs 2016 Actual Kshs '000 Kshs '000 Kshs '000 % Turnover-Equity (Bn) 164 147 17 12% Turnover-FIS (Bn) 477 526 (49) -9% OPERATING INCOME 282,603 266,796 15,807 6% INTEREST INCOME
Slide 18: Financial Highlights: Revenue Analysis
Financial Highlights Revenue Analysis Description 30.06.2017 Actual 30.06.2016 Actual Variance Variance Kshs '000 Kshs '000 Kshs '000 % Turnover-Equity (Bn) 164 147 17 12% Turnover-FIS (Bn) 477 526 (49) (9%) OPERATING INCOME Tra ns a ctions Levy-Equity 196,799 176,747 20,052 11% Tra ns a ctions Levy
Slide 19: Financial Highlights: Expenses Analysis
Financial Highlights Expenses Analysis Description 6 Months Ended 30-06-2017 6 Months Ended 30-06-2016 2017 Actual Vs 2016 Kshs '000 Kshs '000 Kshs '000 % Staff Costs 112,982 115,106 (2,124) (2%) Board & Committee expenses 11,654 11,456 198 2% Marketing expenses 19,998 22,514 (2,516) (11%) Professio
Slide 20: Growth in Total Income and Expenses
Financial Highlights Growth in Total Income Total income EXPENSES 600 900 822 808 800 487 500 717 448 Kshs Millions 700 623 404 400 373 600 Kshs millions 500 300 261 255 384 236 400 347 334 300 200 200 100 100 0 - 2012 2013 2014 2015 2016 30.06.16 30.06.17 2012 2013 2014 2015 2016 30.06.16 30.06.17
Slide 21: Profit Before Tax and Profit After Tax
Financial Highlights Profit Before tax Profit after tax 500 350 320 442 306 450 300 400 379 382 263 350 250 Kshs millions 300 200 184 Kshs Millions 250 233 150 200 150 100 85 82 78 107 99 100 50 50 0 - 2013 2014 2015 2016 30.06.16 30.06.17 2012 2013 2014 2015 2016 30.06.16 30.06.17
Slide 22: Financial Highlights - Investment Analysis
Financial Highlights – Investment analysis As at As at As at Investments held 31.12.2016 31.3.2017 30.6.2017 Liquid? Kshs'000 %age Kshs'000 %age Kshs'000 %age 1 Treasury bonds 96,490 10% 99,591 10% 97,170 10% No - held to maturity 2 Treasury bills 102,959 10% 103,869 10% 79,357 8% No - held to matur
Slide 23: Financial Highlights - Balance Sheet
Financial Highlights – Balance sheet June December Variance Variance 2017 2016 Kshs'000 Kshs'000 Kshs'000 % ASSETS Non current assets Property and equi pment 189,043 184,164 4,879 3% Investme nt property 313,474 313,474 - 0% Intangi bl e assets 163,817 168,084 (4,267) (3%) Investme nt i n associ ate
Slide 24: Financial Highlights - Cash Flow
Financial Highlights – Cash flow 30-Jun-17 30-Jun-16 31-Dec-16 Sh'000 Sh'000 Sh'000 Cash flows from operating activities Cash (used i n)/generated from operati ons 35,571 (27,557) 220,572 Tax pai d (19,393) (6,738) (24,641) Net cash generated from/(used in) operating activities 16,178 (34,295) 195,9
Slide 25: NSE Outlook & Strategy
Save Money, Make Money, | gare’ i Growth Enterprise Market Segment
Slide 26: NSE Outlook & Strategy: Existing Products
NSE Outlook & Strategy Existing Products This year we have been conducting the following marketing campaigns to increase listings in our various market segments; • Main Investment Market Segment (MIMS); NSE continues to conduct awareness campaigns. • Growth Enterprise Market Segment (GEMS); NSE held
Slide 27: Increasing Listings to Improve Attractiveness
Increasing Listings to improve attractiveness • NSE has embarked on a programme of events in cities and major towns in Kenya in order to engage with potential issuers across the country, specifically focussed on equity listings (GEMS &MIMS) and REITS. • The NSE has also held GEMS Forums with Nominat
Slide 28: Sustainability
Sustainability NSE is a member of the UN 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 Social Investm
Slide 29: Our Sustainability Initiatives
Our Sustainability Initiatives Bell Ringing for Gender Equality Charity Trading Day Signing of the Code of Ethics for Business in Kenya
Slide 30: Slide 30
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