CREDIT RISK MANAGEMENT BEYOND NUMBERS. Bloomfield Intelligence Week 50 from December 11th to December 15th BRVM 10 m -1.54% 203.

Transcription

1 Stock Market Review Bloomfield Intelligence Week 50 from December 11th to December 15th 2017 (Source BRVM) Bloomfield Investment Corpon is a pan-african credit rating agency which specializes in the assessment of the credit risk. Headquartered in Abidjan with offices in Douala and in Kigali. the agency operates essentially in Africa. BRVM 10 m -1.54% BRVM COMPOSITE k 0.17% Accreditation Headquarters Website Follow us Tops UEMOA AN-001/2012 RWANDA ref/cma/july/3047/2015 Plateau. BIAO-CI Tower. 15 th floor. Abidjan - Côte d Ivoire Price Listed Companies 45 Evol Value Average PER* k Average yield / share* k 6.15% Market capitalization (billion FCFA) k Trading volume (shares) Trading volume (bonds) Value traded (shares) Value traded (bonds) * Calculated on the basis of the latest financial information published without considen of companies in liquidation Flops The Stock Market Price SERVAIR ABIDJAN CI % % NEI-CEDA CI % N/A N/A SODE CI % % TRACTAFRIC MOTORS CI % % PALM CI % % SICABLE CI % % MOVIS CI % N/A SMB CI % % Sector Indices # Companies Value Evol% Evol YTD Volume Value traded (MFCFA) Avg PER BRVM Industry % % % BRVM Public Services % % % BRVM Finance % % % BRVM Transport % % % BRVM Agriculture % % % BRVM Distribution % % % BRVM - Other Sectors % % % Avg Y/S Market Trends The BRVM ended this week with points for the BRVM 10 index (-1.54%) and points for the BRVM Composite index (+0.17%). The capitalization of the equity market stood at billion FCFA. The equity market transactions amounted to 2.15 billion FCFA at the end of the week, mainly driven by «FINANCE» (39%), «AGRICULTURE» (25%) and «PUBLIC SERVICES» (24%) sectors. SERVAIR ABIDJAN CI stock recorded the largest growth this week with a gain of 39.09%, while NEI CEDA CI stock shown the largest decline with a lost of 12.5%. In the commodities market, silver and oil palm s rebounded at the end of this week, while coffee and natural gas s continued their downward trend.

2 The Chief Economist s Analysis [a focus on NESTLE CI] Market News The Stock Market The Ivorian subsidiary of the NESTLE agribusiness group ended 2016 with a net result of 1,081 million FCFA against 3,135 million FCFA for the 2015 financial year, due to a sharp decline in export sales and an increase in investment. For the first half of 2017, the company's turnover improved by 7.9% compared to the same period in 2016, driven mainly by the good growth in local sales which offset the decline in export sales. Net result was up by 11.6% over the same period to reach 2,398 million FCFA. Export sales for the 2017 financial year are expected to suffer again from a drop in foreign demand, affected by the currency depreciation, particularly in Ghana and Nigeria (between January 1 st and the end of November 2017, the cedi depreciated by 21% against euro and naira by 33%). The investments made by the company will allow it to better manage its development and face the strong competition of the local market. As a result, Nestle CI's year-end result will be around the amount realized in On the stock market, NESTLE CI stock, as of December 15, 2017, shows an impairment loss (by 24.5% compared to the first day of the year) that should not be absorbed by the end of the year. The company's dividend policy is not expected to change, as it has not yet fully absorbed the losses recorded in 2011 and In consequence, Nestle CI should not distribute dividends in the short and medium term. News BRVM Corporates [NSIA BANQUE CI]: NSIA Banque CI has published its results for the third quarter The bank has achieved a net banking income of 49,217 million FCFA, up by 15% over the same period in 2016, and its net result has improved by 19% to 14,652 million FCFA. The bank's outstanding loans grew by 8% while deposits increased by 15% compared to the third quarter of [ECOBANK CI]: At the end of September 2017, the Ivorian subsidiary of the pan-african banking group Ecobank achieved a Net Banking Income of billion FCFA, an increase of 9% compared to the end of September The cost of risk has increased by 64% between September 2016 and September 2017, a rise that the bank explains by the implementation of a policy consolidation for his portfolio. The net profit came out at billion FCFA, an increase of 14%. In addition, on 12 December 2017, the first listing of the company's shares took place. This day, shares were exchanged for a total value of 154,426,185 FCFA. For its first week, the share finished up by 20.9%. [BOAD]: During its 107th ordinary session, the Board of Directors of the West African Development Bank (BOAD) approved new opens for a total amount of 58.1 billion FCFA. The approved commitments include (i) a short-term loan facility to Coris Bank International (CBI) for the partial financing of loans granted as part of the cotton season in Burkina Faso and (ii) 7.5 billion FCFA partial guarantee of SENELEC's bond issue by public offering of an amount 30 billion FCFA. [NIGER]: Niger's "Renaissance Conference" has allowed the government to raise nearly 23 billion USD (against 17 billion USD sought) for the financing of its Economic and Social Development Plan (PDES). Multilateral and bilateral pledges and announcements amount to 12.7 billion USD, including 2.5 billion USD announced by the World Bank and 470 million USD by France. The Conference also recorded several signed memorandums of understanding and expressions of interest from private investors for an aggregate amount of 10.3 billion USD. With a total cost estimated at around 27 billion USD, of which 62% is public expenditure, the PDES is built around five strategic axes: (i) cultural renaissance, (ii) social development and demographic transition, (iii) accelerating economic growth, (iv) improving governance, peace and security, and (v) sustainable environmental management. [COTE D'IVOIRE]: According to a study, the Ivorian middle class, which represents 26.4% of the 23 million inhabitants, is still not large enough to lead to economic growth through consumption. The Ivorian middle class is defined by the authors as the group of people who earn more than 4 USD per day, excluding the richest 5% of the population. This makes it a "very heterogeneous" category. The bottom of the category (farmers, informal sector traders, retirees), who represent 79% of the middle class, remains "vulnerable" and can fall back into poverty in the event of a hard blow. This study is the result of a partnership between Côte d'ivoire, represented by the Ministry of Planning and Development, and Agence Française de Développement.

3 Industry Sector Public Services Sector Distribution Sector Transport Sector The Stock Market SICABLE CI % % 5.7% 11.1% FILTISAC CI % % 6.1% 21.8% NEI-CEDA CI % N/A N/A -3.7% N/A NESTLE CI % N/A 2.4% 55.0% CROWN SIEM CI % % 2.7% 9.2% AIR LIQUIDE CI % % 0.9% 2.1% SOLIBRA CI % % 14.4% 26.3% SMB CI % N/A 7.4% N/A SITAB CI % % 5.1% 24.8% TRITURAF CI-Ste en Liquidation % N/A N/A N/A N/A N/A N/A UNILEVER CI % N/A N/A -12.8% 40.1% UNIWAX CI % % 11.0% 18.4% CIE CI % % 1.8% 39.1% ONATEL BF % % 15.3% 31.1% SODE CI % % 3.1% 105.4% SONATEL SN % % 23.9% 30.4% Financial Sector BICI CI % % 34.1% 23.0% BANK OF AFRICA BN % % 11.5% 17.8% BANK OF AFRICA BF % % 39.7% 34.5% BANK OF AFRICA CI % % 18.9% 27.1% BANK OF AFRICA M % % 23.6% 26.4% BANK OF AFRICA NG % % 27.5% 23.9% BANK OF AFRICA S % % 10.5% 14.6% CORIS BANK INTERNATIONAL BF % % 48.9% 15.7% ECOBANK CÔTE D'IVOIRE %* ,00% 32.7% N/A ECOBANK TRANS. INCORP. TG % N/A 6.71% -52.1% 5.8% NSIA BANQUE CI % N/A N/A N/A N/A SAFCA CI % N/A N/A N/A N/A -1.7% -6.8% SGB CI % % 30.3% 34.6% SOCIETE IVOIRIENNE DE BANQUE CI % % 33.7% 28.7% SERVAIR ABIDJAN CI % % 8.7% 27.6% BERNABE CI % % 5.4% 19.0% CFAO CI % % 6.3% 19.3% TRACTAFRIC MOTORS CI % % 4.7% 26.2% VIVO ENERGY CI % % 1.6% 19.7% TOTAL CI % % 2.7% 26.1% TOTAL SN % N/A 2.85% 0.0% -0.3% BOLLORE AFRICA LOGISTICS CI Ratio marge nette % % 11.9% 3.7% MOVIS CI % 1 3 N/A N/A -11.7% 89.8%

4 Agricultural Sector Other Sectors The Stock Market PALM CI % % 3.6% 5.1% SUCRIVOIRE % % 0.2% 1.6% SICOR CI % N/A N/A 11.8 N/A 28.4% 30.5% SOGB CI % % 11.0% 11.0% SAPH CI % N/A 1.0% 1.8% SETAO CI % % 24.8% -70.3% Currencies* Other Markets * Weekly evolution of the average (order the day before the close of trading) Raw Materials Price Evol USD / XOF % GBP / XOF % EUR / XOF % JPY / XOF % CNY / XOF % ZAR / XOF % NGN / XOF % EGP / XOF % KES / XOF % African Stock Markets Johannesburg Stock Exchange Nairobi Stock Exchange Nigerian Stock Exchange Egyptian Exchange Casablanca Stock Exchange ALL SHARE INDEX m NSE ALL SHARE INDEX m ALL SHARE INDEX m EGX 100 INDEX k MOROCCAN ALL SHARE INDEX m -1.56% % % % % Price Evol Silver (USD/Oz) % Gold (USD/XAU) % Natural gas (USD/MMBtu) % Crude oil (USD/bbl) % Cococa London (GBP/t) % Cacao New York (USD/t) % Coffe US (USD/lb) % Rubber (JPY/kg) % Palm oil (Riggints/t) %

5 Credit Ratings (1/3) Company name Country Sector/ Activity Long term Short term Rating Outlook Rating Outlook Rating expin date Air Côte d Ivoire Airline company BBB+ Stable A3 Stable 30/08/2017 Alios Finance Financing by leasing BBB+ Stable A1 Stable 31/08/2018 ANSUT Telecommunications Ongoing reassessment AVENI RE Reinsurance A- Stable A2 Stable Rating expired Bank Of Africa Benin Benin Banking sector A+ Stable A1 Stable 31/05/2018 Bank Of Africa Burkina Faso Burkina Faso Banking sector A Stable A1 Stable 31/05/2018 Bank Of Africa Côte d Ivoire Banking sector A Positive A2 Stable 30/05/2018 Bank Of Africa Mali Mali Banking sector A- Stable A2 Stable 31/05/2018 Bank Of Africa Niger Niger Banking sector A- Stable A2 Stable 31/05/2018 Bank Of Africa Senegal Senegal Banking sector A- Stable A2 Positive 31/05/2018 BERNABE Distribution of hardware products. industrial equipment. metal products and construction materials A+ Stable A1 Stable 31/07/2018 Caisse Régionale de Refinancement Hypothécaire UEMOA Financial institution AA Positive A1+ Stable 30/06/2018 CAMTEL Cameroun Telecommunications Ongoing reassessment CI Energies Monitoring of the energy sector and electrical infrastructure works Confidential 31/12/2017 CIE Cote d'ivoire Electricity AA+ Stable A1+ Stable 31/08/2018 Commune du Plateau Côte d'ivoire Local community BBB- Stable A2 Stable 31/10/2017 Côte d Ivoire Céréales Corn and rice processing / Bond issue In development CROWN SIEM CI Cote d'ivoire Metal packaging BBB+ Stable A3 Stable 30/06/2018 DEKEL OIL Seed and palm oil products Ongoing reassessment District d'abidjan Local community BBB- Stable B Positive 30/11/2017 Ecobank Banking sector Confidential 30/04/2018 Emission de la ville de Dakar Senegal Financial instrument A Stable A1 Stable Rating expired FICOGES Audit Confidential Rating expired Fonds d'entretien Routier (FER) Financing of the maintenance of road infrastructure A- Positive A2 Stable Rating expired GuarantCo United Kingdom Institutional collateral AAA Stable A1 Stable 31/05/2018 IDT Cote d'ivoire Tobacco distribution Confidential Rating expired

6 Credit Ratings (2/3) Company name Country Sector/ Activity Long term Short term Rating Outlook Rating Outlook Rating expin date Koffi & Diabaté Développement Construction BBB+ Stable A3 Stable 30/10/2017 Loyale Assurances SA Cote d'ivoire IARD Insurances BB- Negative C Negative Rating expired Loyale Vie SA Cote d'ivoire LIFE Insurances A- Stable A2 Stable 31/07/2018 NESTLE CI Cote d'ivoire Food industry Ongoing reassessment NSIA Assurance Benin Benin Insurance Confidential 31/07/2018 NSIA Assurance Cote d'ivoire Insurance Confidential 31/05/2018 NSIA Assurance Gabon Gabon Insurance Confidential 30/06/2018 NSIA Assurance Guinée Bissau Guinea-Bissau Insurance Confidential 30/06/2018 NSIA Assurance Senegal Senegal Insurance Confidential 30/06/2018 NSIA Assurance Togo Togo Insurance Confidential 30/06/2018 NSIA Assurance Vie Benin Benin Insurance Confidential 31/07/2018 NSIA Assurance VIE Côte d'ivoire Insurance Confidential 30/06/2018 NSIA Assurance Vie Senegal Senegal Insurance Confidential 31/07/2018 NSIA Assurance Vie Togo Togo Insurance Confidential 30/06/2018 NSIA Banque Côte d Ivoire Banking sector Confidential 30/04/2018 OMNIUM Mali Manufacturing and distribution of batteries BBB+ Stable A3 Stable 30/06/2018 ONEP Cote d'ivoire Promoting access to safe drinking water BB- Stable B Stable 30/09/2017 PAA Cote d'ivoire Port activities A+ Stable A1- Stable 31/07/2018 PALMCI Cote d'ivoire Seed and palm oil products A- Stable A1- Positive 30/06/2018 PASP Cote d'ivoire Public port opens A Positive A2 Positive 30/06/2018 PETRO IVOIRE Cote d'ivoire Oil Products Distribution A Stable A3 Stable 30/06/2018 Radiant Insurance Company Rwanda Insurance Confidential 31/07/2017 SHELTER AFRIQUE Kenya Banking BBB+ Stable A3 Negative 30/06/2018 SICOGI Cote d'ivoire Construction and housing management Confidential Rating expired SIMAT Cote d'ivoire Handling and Transit Confidential Rating expired Société Equatoriale des Mines Gabon Mining opens Confidential 31/12/2017 Société Ivoirienne de Banque Côte d Ivoire Banking sector A+ Stable A1 Stable 28/02/2018 Société Ivoirienne de Raffinage (SIR) Cote d'ivoire Crude oil refining Confidential Rating expired

7 Credit Ratings(3/3) Company name Country Sector/ Activity Long term Short term Rating Outlook Rating Outlook Rating expin date SODECI Cote d'ivoire Water distribution AA- Stable A1- Stable 31/08/2018 State of Cote d'ivoire - Local currency rating Côte d'ivoire Sovereign debt A- Stable A2 Stable 30/06/2018 Tropical Distribution Distribution In development Tropical Packaging Metal industry In development UIREVI Export agriculture Confidential 31/07/2016 Ville de Dakar Senegal Local community BBB+ Stable A3 Positive Rating expired VIP NET Telecommunications Confidential Rating expired

8 Corporate Bonds Bond Market Quantity Previous Coupon Maturity ORAGROUP 6.75% june/ 04 dec SHELTER AFRIQUE 6.6% feb / 28 august SIFCA 6.90% august Regional Entities Bonds Quantity Previous Coupon Maturity BIDC-EBID 6.50% apr/ 28 sep BIDC-EBID 6.510% june BOAD 5.95% march BOAD 5.95% dec CRRH-UEMOA 6.10% feb / 13 august CRRH-UEMOA 6.10% jan / 17 july CRRH-UEMOA 6% apr / 26 oct CRRH-UEMOA 6% june/ 30 dec CRRH-UEMOA 5.85% jan / 04 july CRRH-UEMOA 5.85% jan / 03 july Government Bonds Quantity Previous Coupon Maturity ETAT DU MALI 6.20% may ETAT DU MALI 6.50% apr ETAT SENEGAL 6.5% may/27 nov ETAT SENEGAL 6.70% dec ETAT SENEGAL 6.50% jan / 29 july ETAT SENEGAL 6.30% may / 25 nov TPBF 6.50% mai / 29 nov TPBF 6.50% jan / 31 july TPBJ 6.50% apr TPCI 6.30% june / 03 dec TPCI 6.55% may TPCI 5.85% juin / 19 dec TPCI 3% juin / 19 dec. TPCI 5.99% may TPCI 5.85% apr/05 oct TPCI 6% apr TPCI 5.90% june TPCI 5.90% nov TPCI 6.25% march / 30 sep. SUKUK ETAT DE COTE D'IVOIRE 5.75% juin/28 dec SUKUK ETAT DE COTE D'IVOIRE 5.75% sept/7 march SUKUK ETAT DU SENEGAL 6.25% july/18 jan SUKUK ETAT DU SENEGAL 6% july/26 jan SUKUK ETAT DU TOGO 6.5% august/ 17 fév

9 Contacts Bloomfield Investment Corpon Bloomfield Investment Corpon 06 BP 1888 Abidjan 06 Tel: (225) / (225) Fax: (225) Djeneba DIALLO Directeur Analyses Economiques et Boursières d.diallo@bloomfield-investment.com