IR Highlights. Bulgarian Stock Exchange Sofia

Transcription

1 Bulgarian Stock Exchange Sofia IR Highlights Macro Highlights Market Highlights Milestones Company Highlights Main Priorities Why invest in Bulgaria 1

2 EUR bln Macro Highlights GDP (EUR mln) (F) Real GDP growth 1.3% 1.6% % (F) Short-term interest rates 1.14% 0.79% 0.54% 0.15%* Population N/A GDP per capita (nominal, EUR) N/A Market Cap (as at Sept 30, EUR mln) Market Cap/GDP 12.1% 11.7% 9.9% 9.7% * Data as at August 31, 2016 BGN/EUR exchange rate is fixed at BGN exchange rate was pegged to DEM (hence to EUR) since 1999 Source: BNB, NSI, Eurostat 50 Market Capitalisation and GDP % 16.5% 12.7% 12.2% 11.7% 9.9% 9.7% 18% 16% 14% 12% % 15 6% 10 4% 5 2% Market Capitalisation GDP Mcap/GDP 2

3 Jan.2010 Jul.2010 Jan.2011 Jul.2011 Jan.2012 Jul.2012 Jan.2013 Jul.2013 Jan.2014 Jul.2014 Jan. Jul. Jan.2016 Jul.2016 Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016 Aug 2016 Sep 2016 Oct 2016 Market Highlights YTD Trading value (EUR mln) Capital raised (EUR mln) Companies that raised capital IPOs Stable economic perspective and GDP growth forecast have a positive influence on financial markets. From January to October the main index SOFIX grew by 16.32%. The growth compared to October is even bigger: 19%. In September 2016 an ETF on SOFIX was launched, further fostering the index performance and investors interest. 650 SOFIX performance SOFIX performance 2016 YTD SOFIX value P/E P/B SOFIX value P/E P/B 3

4 EUR Bln Market Highlights 12% Turnover Velocity vs Market Cap YTD* % % 3.5 4% 2% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016 Capitalization (EUR) SOFIX Turnover Velocity BSE Turnover Velocity Aug 2016 Sep 2016 Oct *Main BSE market figures Despite the slight decrease in the number of listed equity issues, the market capitalisation increased for five consecutive months. 4

5 EUR Mln Market Highlights Asset management companies (June 2016) 30 Net Assets Under Management (AuM) of investment funds (EUR mln, June 2016) 440 Market Cap held by all institutional investors (EUR mln, Sept. 2016) 723 Share ownership by institutional investors (Sept. 2016) 2 Share ownership in SOFIX companies by institutional investors (Sept. 2016) 16% Share ownership in BGBX40 companies by institutional investors (Sept. 2016) 13% Institutional investors include Investment funds, UCITs, Pension insurance companies Sources: FSC, BAAMC Bulgarian Investment Funds' AuM Dec.2010 Dec.2011 Dec.2012 Dec.2013 Dec.2014 Dec. Jun.2016 Bulgarian Investment funds total assets under management (EUR) Total number of investment funds 5

6 Milestones Bulgarian Stock Exchange founded Bulgarian Central Depository founded BSE licensed by SEC 1997 SOFIX First IPO BG XETRA trading platform implemented Listing of BSE own shares CGIX Longer Trading Hours Premium Equity segment launched 2012 Main BSE and Alternative BaSE markets introduced BG40 BGBX SEE Link project started BSE Chairs National Corporate Governance Committee SEE Link order routing system launched 2016 SEELinX SEELinX EWI 6

7 Company Highlights Ticker BSO ISIN BG Market: Main Market, Standard Equities Segment Issue size Last 52 weeks High price (EUR) Low price (EUR) Last price (EUR) Traded value (EUR) Number of transactions 538 Shares traded Market cap (EUR million) 8.07 There is no limit on how many BSE shares could a single shareholder own. Nevertheless, acquiring 1 or more requires regulatory approval. BSE ownership subsidiaries, joint venture and minority interest Financial Market Services Ltd BSE % SEE Link Doo - Skopje 20.36% 50.05% 33.33% BSE 66.67% 19.62% Shareholder Group (as at ) Ministry of Finance Brokerage Firms and Banks Other Legal Persons Natural Persons Central Depository (CD AD) 49.69% 6.61% 43.7 BSE Ministry of Finance 7

8 EUR Mln EUR Mln BSE Financials And Market Performance (EUR '000) Q3 '13 Q3 '14 Q3 '15 Q3 '16 Operating income Operating cost Operating result EBIT EBITDA Net profit/loss Profit/loss per share (EUR) BSE Assets / Liabilities Structure BSO vs SOFIX 2016 YTD 2 15% 1 5% -5% -1-15% Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016 Aug 2016 Sep 2016 Oct SOFIX change BSE change BSE Revenue Structure Sep.2013 Sep.2014 Sep. Sep.2016 Non-current assets Current assets Equity Non-current liabilities Current liabilities Sep.2013 Sep.2014 Sep. Sep.2016 Other Registration fees Information Service Fees Membership Fees Finance income Rentals Trading fees 8

9 EUR '000 BSE Financial Standing Total revenue 700 Sep. Sep.2016 Total revenue % EBITDA EBITDA -83 EBIT -130 Operating profit -208 EBIT -30 Operating profit % Total cost -830 Total cost

10 BSE Revenue Structure Revenue as of September 30, Revenue as of September 30, % 6.1% 4.7% 26.4% 22.6% 19.5% 15.7% 5.3% 5.8% % 28.3% 12.8% 10. Trading fees Registration fees Finance Income Information service fees Membership Fees Rentals Other 10

11 BSE Cost Structure Cost as of September 30, Cost as of September 30, % 1% 3% 42% 46% 45% 49% 5% 6% Materials and consumables Hired services Deprecation and amortisation Personnel cost Other operating expenses 11

12 Main Priorities SEE Link - Further integration and technical adaptations of all participating exchanges. BSE International to be made available in See Link once launched; Cross-border DVP settlement with Greece agreed; Discussions for further cross-border settlement arrangements. News feed covering the region to be embedded in the SEE Link website. BSE international market - 75 instruments listed all over the world equities / ETFs / ETCs / certificates at start will be continuously traded with auctions. All issues to be electronically quoted by a dedicated market-maker. Settlement for local brokers at CD AD and at Clearstream Luxemburg /CBL/ for the remote market-maker. Treasuries - domestic issues to be tradable on BSE as from mid Other key focus areas: SME Growth Market to be launched as an incubator for companies to the size, experience and knowledge required to list on the official financial markets; Non-listed business research project to find potential companies, which could be financed through the stock market. 12

13 Corporate Governance SOFIX vs CGIX performance BSE is one of the founders of the National Corporate Governance Committee. BSE is the author of the first corporate governance code back in BSE is among the authors of the National Corporate Governance Code published in 2007 and the first non-listed company (at that time) to follow it. BSE-Sofia is currently a rotational chairperson of the National Corporate Governance Committee. BSE is among the companies that produce all company disclosure simultaneously in Bulgarian and English SOFIX CGIX BSE calculates an index of the companies with good corporate governance CGIX. The CGIX index grew by 15.45% in 2016 (31.10 YTD), TTM the increase is 20.52%. The dividend yield of the companies, comprising the index, increased to 1.78% in

14 Why Invest in Bulgaria: Dividends vs Interest Rates 8% Dividend yield and interest rates comparison 8% 7% 7% 6% 5.97% 5.58% 6% 5% 4.93% 5% 4% 4.06% 3.96% 4% 3% 2% 1% 1.18% 0.93% 3.04% 3.54% 2.01% 1.49% % 1.87% 2.31% 1.84% % 3% 2% 1% average dividend yield all listed companies average dividend yield SOFIX average interest rate on 6 m to 1y deposits While bank deposits interest rates are falling, in 2016 the average dividend yield of the SOFIX constituents increased, while average dividend yield of the market as a whole remained stable. 14

15 Why Invest in Bulgaria: Legal Entities Taxation Legal Person Capital Gains Taxation Legal Person Dividend Taxation 25% % 1 25% 2 15% 1 5% 5% Bulgaria Romania Poland Austria Germany UK Bulgaria Romania Poland Austria Germany UK Corporate Income Taxation 3 25% 2 15% 1 5% Bulgaria Romania Poland Austria Germany UK 15

16 Why Invest in Bulgaria: Natural Person Taxation Natural Person Capital Gains Taxation Natural Person Dividends Taxation 5 45% % % % 1 1 5% Bulgaria Romania Poland Austria Germany UK Bulgaria Romania Poland Austria Germany UK Bulgaria has: tax on capital gains; 5% dividend withholding tax; 1 flat corporate & personal income tax. 16

17 EUR Mln EUR Bln Why Invest in Bulgaria: Companies Financial Standing of SOFIX Constituents Revenue Cost EBITDA Net profit EBIT EBITDA Net profit 17

18 Why Invest in Bulgaria: Capital market Local Indices Performance -4 Jan Jul Jan Jul Jan Jul Jan Jul Jan. Jul. Jan Jul BGREIT SOFIX BGTR30 BGREIT, which follows the best performing companies, investing in agricultural land and real estate (REITs), outperforms all other indices even in periods of market crisis, when other indices plummet ( ). Over six years BGREIT grew by points or some 14. Index 52 weeks change (Nov 6, - Oct 28, 2016) BUX 33.73% MBI % SOFIX 17.33% RTS 16.14% CROBEX 14.56% BELEX % FTSE % SASX ATX 0.51% WIG -1.07% DAX -2.66% ISE % PX Index -6.36% BET -6.7 CAC % Swiss Market Index % 18

19 Why Invest in Bulgaria: Trading fees Skopje Stock Exchange Trading fees (BPs) Banja Luka Stock Exchange Belgrade Stock exchange Zagreb Stock Exchange Ljubljana Stock Exchange BSE-Sofia Bucharest Stock Echange Montenegro Stock Exchange Seller Buyer Note: BSE charges per executed order regardless of the number of executions it may trigger. 19

20 Issues size (EUR mln) Why Invest in Bulgaria: Listing fees One-off listing fees (EUR) Annual maintenance fees (EUR) Skopje Stock Exchange BSE-Sofia Bucharest Stock Echange Montenegro Stock Exchange Belgrade Stock exchange Banja Luka Stock Exchange Ljubljana Stock Exchange Zagreb Stock Exchange BSE has the second lowest admission fees and the lowest annual maintenance fees in the region. One-off listing fees Issue size (EUR mln) EUR Total Skopje Stock Exchange BSE Montenegro Stock Exchange Banja Luka Stock Exchange Bucharest Stock Exchange Belgrade Stock exchange Ljubljana Stock Exchange Zagreb Stock Exchange Annual maintenance fees Issue size (EUR mln) EUR Total BSE Skopje Stock Exchange Bucharest Stock Exchange Belgrade Stock exchange Montenegro Stock Exchange Banja Luka Stock Exchange Ljubljana Stock Exchange Zagreb Stock Exchange

21 Why Invest in Bulgaria: Perspective Country credit rating Local currency Foreign currency Perspective Fitch BBB- BBB- Stable Moody's Baa2 Baa2 Stable Standard&Poor's BB+ BB+ Stable Source: Ministry of finance GDP Growth (%, yoy) 1.9% % 1.3% 3.6% Inflation (%, yoy) 2.8% 4.2% -1.6% -0.9% -0.4% Unemployment (%) 10.4% 11.4% 11.8% 10.7% 10. Source: BNB 2016 (F) 2017 (F) European Economic Forecast Spring % -0.7% 0.9% 8.6% 8. Ministry of Finance Forecast 2.6% 2.5% % 8.1% 7.3% 21

22 Investor Relations Contacts If you have any questions, regarding the activities of BSE-Sofia, contact us at: Bulgarian Stock Exchange Sofia Tri ushi str, 6, floor 5 Sofia 1000, Bulgaria 22