Nairobi Securities Exchange Plc · NSEKE:NSE
Nairobi Securities Exchange — Conference Presentation (October 2010)
21 slides from Nairobi Securities Exchange's conference presentation, Oct 7, 2010
Slide 1: Unlocking Shareholder Value: The Case for SME Listing
UNLOCKING SHAREHOLDER VALUE: The Case for SME listing October 7th, 2010 Mr. Peter Mwangi Chief Executive Nairobi Stock Exchange
Slide 2: Brief Introduction
Li) Pu me w 4 * Brief Introduction
Slide 3: Vision and Mission
VISION • “To be a leading securities exchange in Africa, with a global reach.” MISSION • “To provide a world class securities trading facility.” • We are the largest stock exchange in East and Central Africa by no. of companies listed and value of their shares and currently the 2nd Best Performing M
Slide 4: Key Objectives
Key Objectives • Offer a unique choice of markets to suit different stages of a company’s lifecycle - through both Equity and Debt Instruments • Ongoing initiative to set up an SMEx with favorable listing requirements designed to meet the needs of SMEs 4
Slide 5: Benefits of Listing
Li) Pu me we x St Benefits of Listing
Slide 6: Why Consider Joining a Public Market
Why Consider joining a Public Market Exponentially grow your organization through; • Ability to raise substantial initial and ongoing capital • A market for your company shares – a current value of the Company • Heighten public profile with customers, suppliers, policy makers • Increase ability to e
Slide 7: The Athi River Mining Limited (ARM) Story
Why Consider joining a Public Market The Athi River Mining Limited (ARM) Story 7
Slide 8: Athi River Mining (ARM) Ltd. Investing today… For tomorrow's prosperity
Athi River Mining (ARM) Ltd. Investing today… For tomorrow’s prosperity. 8
Slide 9: Athi River Mining (ARM) Ltd.
Athi River Mining (ARM) Ltd. • Family business (founded by the late HJ Paunrana) listed at the NSE in 1997 – Floated 23 million shares at Kshs. 12.25 per share. – IPO was oversubscribed by 250% raising Kshs 281.7 million – Started trading at the NSE in Dec 1997 • Company subsidiaries – ARM (Tanzania
Slide 10: ARM – Recent Capital Raising Activities
ARM – Recent Capital Raising Activities YEAR SOURCE AMOUNT 2004 PTA Bank US $ 5.4 million 2005 FISM Listing - Unsecured Medium Kshs 800 million Term Floating Rate Corporate Note 2006 EADB Kshs 80 million 2007 CFC Stanbic Bank US $ 10 million – Refinance Facility 2008 Bank of Africa Kshs 216 million
Slide 11: ARM – Recent Capital Raising Activities
ARM – Recent Capital Raising Activities YEAR SOURCE AMOUNT 2009 CFC Stanbic Bank Kshs 973 million US $ 1,5 million 2009 Barclays Bank Kshs 200 million – Multi-Option Facility US $ 1.99 million and Kshs 20 million – Ancillary Facility 2009 Citibank N.A. US $ 15 million – Term Loan US $ 3 million – OD
Slide 12: Athi River Mining (ARM) Ltd. Financial Performance
Athi River Mining (ARM) Ltd. Financial Performance ARM 10,000,000 9,000,000 Kshs('000') 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Total assets Total revenue Profit Before Tax 12
Slide 13: ARM - Group Turnover (in Kshs million)
ARM - Group Turnover (in Kshs million) • Increase in Group Turnover from Kshs 78.7 milion in 1998 to Kshs 5.1billion in 2009. • Reflecting an increase of 6,437% • Comprising income from – Cement Division 53% – Sodium Silicate Division 21% – Minerals Division 10% – Lime Division 9% – Fertilizer Divis
Slide 14: ARM – Growth in Profit Margins
ARM – Growth in Profit Margins • PBT in 2009 was Kshs 948.7 million up 9,795% from Kshs 9.58 million in 1998 • Increase in Net Profit Margin attributed to investments in new capacities and continuous focus on operational efficiencies 14
Slide 15: ARM – Market Capitalization
ARM – Market Capitalization • The Company’s market capitalization stood at Kshs 10.9billion in 2009 reflecting an increase of 199% over the past 5 years. • Represents a Price Earnings multiple of X17 indicating market confidence in the company’s performance, investment plans and future growth strate
Slide 16: ARM in the Press
ARM in the Press • NAIROBI (Reuters) - Athi River Mining, Kenya's third-largest cement maker, intends to build a 29 megawatt coal-fired power plant for about $50 million - Wed Jul 22,2009 10:45 am GMT • JOHANNESBURG - A US25 million loan has been granted by the Development Bank of Southern Africa to
Slide 17: ARM in the Press
ARM in the Press • Kikwete lays stone for EA's biggest cement plant - By George Sembony The cement factory, owned by Maweni Limestone Limited, a subsidiary of the Kenya-based Athi River Mining Company, would be the largest of its kind in the Eastern African zone with a production capacity of 1.5 mil
Slide 18: Going Forward
Going Forward NSE believes the Survey is one of the vehicles that essentially identifies and profiles Mid – sized Companies The NSE will be engaging with the Top 100 Firms in order to introduce them to the Capital Markets 18
Slide 19: Eligibility Criteria
XCHANGE HE! STILL 4 4 pee 2) 0 Read NAIROBI ST! Eligibility Criteria
Slide 20: Eligibility Criteria: Requirements for Listing
Eligibility Criteria Requirements for listing • The CMA listing regulations • The NSE ongoing disclosure requirements 20
Slide 21: Thank You
w Gg Z HEY STILL : y Rnudlan © = Li) n Oo Si &% < Zz THANK YOU
Nairobi Securities Exchange — Conference Presentation (October 2010) on 6ix