Nairobi Securities Exchange Plc · NSEKE:NSE
Nairobi Securities Exchange — Shareholder Meeting (June 2021)
19 slides from Nairobi Securities Exchange's shareholder meeting presentation, Jun 3, 2021
Slide 1: NSE's 67th Annual General Meeting
NSE’S 67TH ANNUAL GENERAL MEETING 3RD JUNE 2021
Slide 2: Topic Items
TOPIC ITEMS # Operating Environment 01 NSE Governance & Structure 02 NSE 2020/24 Strategy Context 03 Market & Company Performance 04 Company Overview - Conclusion 05
Slide 3: Operating Environment
OPERATING ENVIRONMENT
Slide 4: Global Macros
IMF April 2021 Forecast | Global growth is projected at 6% in 2021, from (3.3%) in 2020 | Signals Recovery Global economy Asia 2019 2020 2021* 2022* 8.60% 2022* 4.40% 1.3% -6.6% 4.4% 3.8% 5.40% 6.00% 2021* 6.00% -1.00% -3.30% 2020 2019 2.80% 2018 2019 2020 2021 2022 2023 Global Macros Europe 2021’s
Slide 5: NSE Governance and Structure
NSE GOVERNANCE AND STRUCTURE
Slide 6: NSE Governance – Executive Committee
NSE Governance – Executive Committee Geoffrey Odundo Chief Executive Kuria Waithaka Jane Kiarie Company Secretary and Chief Legal Officer Chief Finance David Wainaina Officer Chief Operating Officer Terrence Loise Wangui Adembesa Chief Officer - Chief Officer - Derivatives Regulatory Affairs Lucy Ka
Slide 7: NSE Structure and Proposed Re-organization to NSE Group PLC
NSE Structure and the Proposed Re-organization of NSE PLC to become NSE Group PLC CURRENT STRUCTURE 100% shareholding in NSE Clear Limited 22.5% shareholding in CDSC 88.9% in AKS Nominees Limited 100% shareholding in Kenya Futures and Commodities Exchange Limited. The Company also owns the NSE
Slide 8: NSE Strategy Implementation Highlights
NSE STRATEGY IMPLEMENTATION HIGHLIGHTS
Slide 9: Strategic Direction
Strategic Direction Vision: To be the leading exchange and the investment partner Mission: Linking capital to opportunity to of choice through providing efficient investment and enhance stakeholder value capital raising services in Africa and globally Sustainable Operational Strategic People Busines
Slide 10: NSE Strategy 2020-2024 Four Strategic Pillars
The NSE strategy 2020-2024 is aligned is anchored on the following four strategic pillars Overall Implementation status for NSE 2020-2024 strategy || Focus on FY 2020 29% 43% 28% >100% Achievement (Green) 70%-100% Achievement (Amber) <70% Achievement (Red) Total no. of strategic Overall Status Legen
Slide 11: FY 2020 initiatives by strategic pillar
Majority of the implemented initiatives in the FY 2020 fell under strategic Pillar 3 on Operational Excellence || Focusing on Pillar 1 on Sustainable Business Growth 75% 50% 44% 43% 43% 33% 29% 25% 21% 22% 14% 0% SUSTAINABLE BUSINESS GROWTH STRATEGIC PARTNERSHIPS (SP) OPERATIONAL EXCELLENCE (OE) PEO
Slide 12: FY 2020 Key Strategy Highlights
FY 2020 Key Strategy Highlights: Overall 94% achievement in Driving Strategy Implementation Pillar 1 - Sustainable Business Growth Pillar 3 - Operational Excellence 70% Achieved FY 2020 98% Achieved FY 2020 Initiative Strategic KPI Actual Budget Initiative Strategic KPI Actual Budget Equity/Bonds Tu
Slide 13: Market and Company Performance – FY 2020
MARKET AND COMPANY PERFORMANCE – FY 2020
Slide 14: 2020 performance with CIR of 69%
2020 performance was impressive with CIR of 69% against 2019’s 87% || Revenues flat due to Covid effect 2020 COST INCOME RATIO (CIR) TOTAL REVENUES FOR 2020 TOTAL COSTS FOR 2020 69% Kshs.670 Mn Kshs.467 Mn 2020 ACTUAL AGAINST BUDGET AND 2019 ACTUAL COST INCOME RATIOS (CIRs) 233 104 PBT (Kshs.Mn) 219
Slide 15: Market concentration and liquidity a key challenge
Market concentration and liquidity still a key challenge, thus targeting big cap & SoEs listings Equity market capitalization more than doubled over the last The top stocks in terms of market capitalization in FY ten years and currently stand at Ksh.2.6Tn 2020 under review NSE Equity Market Capitali
Slide 16: Profitable but revenues under pressure; diversification needed
While we remains profitable, revenues have come under pressure, externalities and we are looking to improving market diversification and penetration Over the past 9 years, NSE revenues have a CAGR of 6.35% while High level comparisons to other peers exchanges indicate that costs CAGR of 6.78% || NSE
Slide 17: Diversifying into post trade, market data, technology
Thus, diversifying into post trade, market data, technology as a service, training & consultancies; e.g. NSE data attribution is 9% up from 5% last year | JSE’s is at approx. 11% and others global exchanges as below:
Slide 18: NSE has evolved over strategic cycles
In Conclusion, NSE has evolved in Strides over the Years as Illustrated in Strategic Cycles Evolution of our business and key focus in the 2020 – 2024 Strategic Plan (NSE 3.0*) in support of our mission of linking capital to opportunity to enhance shareholders value || Focus now on growing our busin
Slide 19: Nairobi Securities Exchange
nairobi securities exchange mem Diccrr Oppartny
Nairobi Securities Exchange — Shareholder Meeting (June 2021) on 6ix