April Investor presentation

Transcription

1 April 2015 Investor presentation

2 MOEX Overview Recent achievements Where we are heading Strong operating and financial results 2

3 Highly diversified product offering Hedging Indexes FX Local and foreign new single stocks Commodities Interest rates new Investing and trading Listing Local and foreign shares, DRs new International ETFs new EQUITIES Investing and trading Government bonds Municipal bonds Corporate bonds ABS, MBS Eurobonds Currency conversion + FX swaps Swap instruments Spot instruments (USD, EUR, CNY, HKD new, GBP new and CIS currencies) COMMODITIES Investing and trading Spot and swap precious metals Grain market new Funding Credit & deposit operations REPO with CCP REPO with CBR with CMS Inter-dealer REPO 3

4 SETTLEMENT & DEPOSITORY CLEARING coupled with strong post-trade infrastructure Post-Trade Excellence: CCP and CSD National Clearing Centre (NCC) own funds (capital) 1 CCP cleared value based on ADTV (Jan Dec ) Comments RUB bln RUB bln FX Derivatives REPO with CCP 99.7 Equities 41.0 Fixed income 42.2 Commodities 0.07 Well-capitalized NCC as CCP for all asset classes Bank of Russia qualified CCP status Centralized clearing of OTC derivatives 1 Jan Jan 1 Jan 1 Jan Mar 2015 OTC derivatives 0.01 National Settlement Depository 2 (NSD) capital Assets in deposit 3 Comments RUB bln RUB bln Safekeeping and settlement services Сollateral management services for REPO transactions Repository for OTC trades Links to ICSDs for Russian bonds and equities 1 Jan Jan 1 Jan 1 Jan Apr Dec Dec Dec Dec 31 Mar 2015 AA- rating by Thomas Murray 4 Source: Moscow Exchange operational information 1 Figures in accordance with Russian Accounting Standards as reported to and disclosed by the CBR on a monthly basis 2 Russian Central Securities Depository 3 Assets in deposit based on Company operational data 4 Thomas Murray leading global agency for depository services 4

5 Rebased to 100% Moscow Exchange has a proven and cycle-protected business model Operating income 1 RUB bln 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 5,7 MICEX Index, % 8,0 9,4 11,2 11, ,9 CAGR of ~23% in ,5 24,6 30,4 Key highlights Fee & commission income evolution 1 Unique business model allows MOEX to increase operating income regardless the stage of economic cycle: Business line is diversified, while markets have limited growth correlation Growth drivers differ across markets and products 2 Equities+Bonds Derivatives FX & MM Depositary & settlement Other 3 6% 10% 8% 6% 18% 26% 8% 42% 17% 18% 20% 35% 39% 43% 11% 12% 11% 27% 23% 20% According to Moscow Exchange Consolidated Financial Statements for the relevant period 1 RTS data is consolidated from June 29, Include other income related to securities market in Include income from Information services & sale of software and other fee&commission income in FX: 22% MM: 21% Listings: 2% Bonds: 7% Equities: 11% 5

6 Sound risk-management amidst challenging environment Where we are now: 10 years of market volatility Comments 400% 350% 300% Conflict in Georgia -25% 1 Lehman Brothers bankruptcy -56% Greek debt crisis -13% Ukrainian crisis -15% +208% MOEX strives to ensure an uninterrupted trading, clearing and settlement amid periods of augmented volatility: One of the most capitalized CCPs in the world 2 250% 200% 150% 100% 50% +99% +92% +80% Skin in the game: large base of committed resources of the CCP prior to any loss mutualization Full-fledged pre-trade risk control mechanism Improved risk monitoring and flexible margin adjustments Discrete auction mechanism for equities, no trading halts on other markets in case of significant asset price changes MICEX Index MSCI EM MSCI US USD/RUB Source: Moscow Exchange; Bloomberg as of April 7, 2015 (last date included April 6, 2015) 1. Difference between maximum and minimum values for the period 2. Moscow Exchange analysis based on Exchanges web-sites 6

7 Corporate governance: aiming to set an example for Russian issuers Board members Position NEW Alexey Kudrin Chairman of the Supervisory Board; Sberbank of Russia, Member of the Supervisory Board Nicola Jane Beattie Mikhail Bratanov Yuan Wang Anatoly Karachinsky Nbxc Ltd, Director/Senior Executive Director Societe Generale Group, Head of Societe Generale Securities Services for Russia and CIS; Rosbank, Head of Depository Department at Rosbank China Development Bank, Chief Economist IBS Group, Chairman of the Board Rainer Riess Independent Director Sean Glodek Russian Direct Investment Fund, Director, Member of the Executive Board Andrey Golikov Valery Goreglyad Yuriy Denisov Strana Detei, Director for Investments and Commerce Bank of Russia, Chief Auditor NCC, Deputy Chairman of the Supervisory Board Bella Zlatkis Sergey Kozlov Sergey Lykov Sberbank, Deputy Chairman of the Management Board VTB-24, Senior Vice-president, Deputy Director of Investment Department Vnesheconombank, Deputy Chairman of the Executive Board Kirill Shershun CentroCredit, First Deputy Chairman of the Executive Board Alexander Afanasiev Moscow Exchange, CEO, Chairman of the Executive Board * Independent directors 7

8 One of the highest free-floats in Russia Growing ADTV (Average Daily Trading Volumes) of MOEX shares 1 RUB mln Rank among the most liquid shares listed on MOEX 2 Average daily trading volume MOEX MSCI inclusion CBR 11.7% share sale Dispersed ownership with no controlling shareholder as of March 16, 2015 Free float 50,7% 3 MICEX- Finance 2,2% CBR 11,7% RDIF 5,3% Sberbank 10,0% VEB 8,4% EBRD 6,1% CIC 5,6% 1 Trading volume in main trading mode (T0, T+2) 2 Ordinary and preferred shares 3 100% owned subsidiary of the Moscow Exchange 4 Top 20 companies by market capitalisation from MICEX Index and one of the highest free-floats in Russia 4 Magnit 54% MOEX 51% MTS 49% Sberbank 48% Lukoil 46% Gazprom 46% VTB 39% AFK Systema 36% Rushydro 34% Uralkaly 33% Tatneft 32% Norilsky Nickel 30% Rostelecom 28% Novatek 27% Surgutneftegaz 25% Alrosa Severstal Phosagro 23% 21% 19% E.ON Russia 18% Megafon 15% 8

9 Investment highlights 1 MOEX operates in Top-10 largest economy globally 1 and covers Russia s largest public trading markets 2 Leading market position in a global context 3 Unique business model, offering trading of a wide range of assets together with well-established centralized post-trade infrastructure 4 High transparency and corporate governance standards 5 Successful track record of infrastructural reforms and improving regulatory framework 6 Strong financial performance 7 Attractive dividend policy 1 According to IMF projections for year 9

10 1 MOEX Overview Recent achievements 3 4 Where we are heading Strong operating and financial results 10

11 Key developments in MOEX infrastructure performed well during turbulent periods Volatility spiked in March, October and December performance proved soundness of risk-management systems amidst challenging environments MOEX strives to ensure uninterrupted trading, clearing and settlement during periods of particularly high volatility International Central Securities Depositories (Euroclear and Clearstream) launched services for Russian corporate bonds and equities Corporate bonds became eligible for ICSDs settlement services from 1 January and equities from 1 July MOEX completed reforms to the listing process, simplifying the quotation list structure and also strengthening listing requirements for issuers New listing rules are based on a new Corporate Governance Code adopted in National Settlement Depository (NSD) initiated a corporate action reform programme to make corporate actions by Russian companies electronic and eliminate cumbersome paperwork for investors MOEX now has one of the highest free-floats among Russian issuers more than 50% The CBR placed to the market USD 469 mln (stake of 11.7%) in MOEX, which led to an increase in the free-float Dispersed ownership with no controlling shareholder 11

12 Key dates in March 16 March 28 April 12 May 16 June The Group's consolidated financial statements release AGM record date The date of the Annual General Shareholders Meeting for ("AGM") Dividend record date The dividend is expected to be paid no later than 16 June

13 electronic order book Equity and derivatives trading globally Equities market trading volumes dynamics (in electronic order book) in USD and national currencies Developed markets exchanges 12m/12m, % USD national currency Emerging markets exchanges 12m/12m, % USD national currency NASDAQ OMX 27% 27% Shanghai SE 63% 64% London SE Group 24% 25% Korea Exchange 5% 1% BME Spanish Exchanges 23% 25% Moscow Exchange 2% 24% Euronext 17% 18% Johannesburg SE 1% 13% ICE&NYSE 16% 16% Borsa Istanbul -6% 8% Hong Kong Exchanges 15% 15% BM&FBOVESPA -10% -2% Deutsche Boerse 10% 11% Mexican Exchange -12% -8% Derivatives trading volumes dynamics in contracts 1 Developed markets exchanges 12m/ 12m, % Emerging markets exchanges 12m/ 12m, % Hong Kong Exchanges 30% Shanghai Futures Exchange 31% ICE&NYSE 15% Moscow Exchange 25% Chicago Board Options Exchange 12% China Financial Futures Exchange 12% Chicago Mercantile Exchange 9% Dalian Commodity Exchange 10% Singapore Exchange 5% Johannesburg SE 6% NASDAQ OMX 1% National Stock Exchange India -11% Deutsche Boerse -13% BM&FBOVESPA -13% Japan Exchange Group -15% Korea Exchange -17% Source: WFE 1 Trading volumes in contracts 13

14 1 2 MOEX Overview Recent achievements Where we are heading 4 Strong operating and financial results 14

15 Key initiatives and growth areas Diversification Optimization Penetration Sophistication Standardization Market Data Indexes OTC derivatives Listing Commodities Client service and experience Business processes (IT platform, fast product development) Organizational structure and costs Tariffs optimization GR strategy alignment with regulator New listings (privatization, high quality new names in the region, Russian offshore names) Local investor base development Products ( bondization, repo with pool, FX non residents) Single collateral pool Cross market margining Tri party services Collateral management EMIR recognition Foreign clearing membership RUB settlement, regulation and technologies alignment with global standards Repatriate issuers and liquidity from international venues Corporate governance lighthouse 15

16 USA UK France Japan India China Brazil Russia UK USA Japan Germany Brazil China Russia Growth opportunities across all markets Equity market capitalisation to GDP 1 Corporate debt to GDP 2 151% 141% 114% 92% 76% 58% 38% 32% 129% 114% 69% 53% 42% 26% 19% Interest rate derivatives open position to GDP 68% 25% 15% 0% USA Brazil Germany Russia Comments Russian capital and derivatives markets have potential both on supply and demand points of view: Relatively low share of equity and debt market capitalisation to GDP Potential in growth in interest rate derivatives due to market development and the CBR policy Developed markets Emerging markets Source: Moscow Exchange,WFE, IMF, Rosstat, SCIB, BIS 1 Data for. Market capitalisation for the USA is the sum of NASDAQ and NYSE market capitalisations, for China the sum of Shanghai and Shenzhen market capitalisations, for India BSE market capitalisation, for Brazil BM&FBovespa market capitalisation, for Russia Moscow Exchange market capitalisation, for France NYSE Euronext Europe market capitalisation, for UK LSE market capitalisation (including Borsa Italiana market capitalisation), GDP IMF forecast 2 Corporate debt data BIS statistics of debt securities amount outstanding as of June, Russia GDP estimate for SCIB, other countries IMF data 16

17 USA UK Japan Australia Canada Brazil South Africa Hong Kong Russia Institutional money: pension funds reform Pension assets Pension assets in USD bln 113% 131% 65% 105% 80% 13% 67% 41% 4% ХХ% 236 Allocation of Russian pension fund assets 2 Cash Fixed income Other 15,6% 69,3% 10,4% Deposits Equities 2,4% 2,3% 2,4% 40% 33% 35% 29% 3 Pension assets as % of GDP % 54% 48% 50% RUS BRA CHE NLD JPN CAN GBR AUS USA 1 Key highlights Russian pension funds assets are low compared to other countries both in an absolute term and relative to GDP Pension funds intensively invested in bank deposits and affiliated companies, while share of equities in portfolios is negligible Positive developments: CBR became a regulator of the pension system Adopted changes in pension funds regulation: One year non-loss rule was abolished Investment horizon of NPFs was extended to 5 years Customer incentive to stay with the fund manager not less than 5 years Guarantee fund mechanism (similar to Deposit Insurance Agency in the banking system) Number of individuals, whose pension savings are invested in non-state pension funds increased from ~1 mln in 2007 to ~20 mln in Constraints: The governmental decision to extend the moratorium on pension savings contributions 4 to NPFs doesn t support non-state pension industry growth for Source: OECD, investfunds.ru, FSFM, Economist Intelligence Unit, Russian State Statistics Agency (Rosstat), Tower Watson 1 Obligatory savings, not including reserves 2 Obligatory savings managed both by NPFs (Non-state pension funds) and Pension fund of Russia 3 Chile 4 According to the interview of Russian Minister of Labour and Social Affairs, contributions of RUB 523 bln will be transferred to PAYGO pensions in Further moratoria are reported to be under consideration 17

18 Retail money: aiming to grow equity culture Retail investors bank deposits 1 USD bln Comments As Russian securities market passed through several periods of turbulence, individuals preferred conservative bank deposits or real estate over securities market Due to young equity culture, there is a limited number of buy and hold investor type among individuals, while interest from short-term speculative investors is relatively strong China Korea Russia Brazil Mexico Indonesia Malaysia Turkey Recent regulatory changes: Share of population with accounts opened for securities trading % Share of all retail clients accounts 10.0 Share of active retail clients accounts Tax breaks on capital gains on securities held for more than 3 years (up to RUB 9 mln for securities purchased after 1 Jan ) Introduction of individual investment accounts for private investors since These initiatives are set to attract individuals to securities market Korea China Turkey Russia Brazil Malaysia Mexico Indonesia Russia Source: EIU, World Bank, IMF, central banks of Korea, Turkey, Mexico, Indonesia, National Bureau of Statistics of China, Allianz, SZSE Factbook, CBR, Moscow Exchange 1. Korea, Turkey, Mexico, Indonesia data for August, Russia as of 1.09., Brazil, China 2012, Malaysia

19 1 2 3 MOEX Overview Recent achievements Where we are heading Strong operating and financial results 19

20 Financial results: the MOEX business model delivers again Operating income RUB bln +24% Interest and other finance income Fee&commission and other income Net profit RUB bln +38% % 52% 47% 53% % 54% % 60% +51% % 52% % 51% % 51% % Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q Operating expenses RUB bln +5% EPS and key financial ratios Chg % Basic EPS, RUB % EBITDA margin 1 67% 71% +4.5 p.p. Cost income ratio % 34.1% -6.0 p.p. 4Q 1Q 2Q 3Q 4Q Dividends per share, RUB % Source: Consolidated Financial Statements 1 EBITDA margin = (Profit before tax Depreciation Interest expense in respect of written put option over own shares) / (Operating Income) 2 Cost income ratio = (Personnel expenses + Administrative and other operating expenses) / (Operating Income) 3 The Supervisory Board recommended that shareholders approve a dividend of RUB 3.87 per ordinary share at the AGM scheduled for 28 April

21 Diversified fee & commission income Fee & commission income performance RUB mln 4Q Fee & commission income breakdown RUB bln +22% 4Q % % % % +64% +33% 1,176 1, % 12% 18% 19% 20% 8% 11% 20% 22% 21% Other fee&commission income Derivatives market Depository and settlement services Foreign exchange market Money market Fixed income market Equities market 11% 11% 7% 11% Equities market Fixed income market Derivatives market Money market Foreign exchange market Depository and settlement services Comments In 4Q fee & commission income remained well-diversified and increased 42% YoY Lower income from Fixed Income Market was more than offset by strong performance in FX Market, Depository and Settlement Services and Equities Market Source: Consolidated Financial Statements Other fee & commission income mainly includes income from sale of software and technical services and information services, listing and other service fees 21

22 Certain growing interest from foreign investors, while domestic investor base remains the core Equities Market RUB trln Trading volumes % % % % Volume breakdown by investor types 11% 10% 40% 4% 35% 3% 11% 7% 33% 46% Derivatives Market RUB trln % % % % % 15% 38% 46% 47% 2% 6% 45% Fixed Income Market RUB trln -31% % -32% -23% % 8% 2% 18% 63% 14% 10% 3% 19% 54% FX Market RUB trln +46% % % % % 90% 1% 12% 87% Money Market 1 RUB trln % % % +10% % 11% 4% 85% 1% 15% 4% 80% Jan Feb Mar Source: Moscow Exchange data 1 Trading volumes including REPO with collateral management. Investor structure based on on-exchange trading volumes only Russian funds Russian retail investors Foreign investors Russian banks and brokers prop. trading Russian corporates 22

23 11% Equities Market Trading volumes 1 RUB trln MICEX Index (average for the period) Equities XX% Velocity 36% 43% 37% 45% 42% 39% 47% Russian equities trading volumes 2, MOEX vs LSE % 44% 46% 48% 42% 45% 45% 44% 41% 45% 46% 44% 44% 46% 49% 49% 1,441 1,429 1,492 1,422 1,403 1,432 1,457 56% 54% 52% 58% 55% 55% 56% 59% 55% 54% 56% 56% 54% 51% 51% % % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2015 Moscow Exchange LSE - international order book 3 3 Gazprom Sberbank Magnit 4Q 1Q Fee & commission income 2Q 3Q 4Q Market share 54% 31% 46% 53% 47% 69% RUB mln +26% Comments 1,404 1, Q 452 1Q +33% 453 2Q 397 3Q 464 4Q Despite challenges facing the market, MOEX s average market share vs LSE remained at appr. 55% in. Trading in local shares vs DRs has potential to grow due to reforms to the domestic financial infrastructure The market share remained above 50% in 2015, while non-resident on-exchange investment inflow reached RUB 37.3 bln (vs outflow of RUB 18.1 in ) Source: Moscow Exchange operational information and Consolidated Financial Statements, Liquidmetrix 1 Volumes on both primary and secondary markets 2 Moscow Exchange and London Stock Exchange data for Russian dual-listed companies 3 Only electronic order book deals 23

24 7% Fixed Income Market remained muted from 1Q on Trading volumes 1 RUB trln -31% % % 56% 62% % 61% Sovereign bonds Corporate, municipal and other bonds % 56% -14% % 61% % 54% % 73% Comments Primary corporate bond placements of RUB 1,179 bln held in Q4 versus RUB 204 mln in Q3 led to QoQ fee & commission income growth of 69% In Q4 market activity remained muted amid changing market conditions due to RUB depreciation and key rate hike 4Q 1Q 2Q 3Q 4Q Fee & commission income RUB mln -25% 1,379 1, % Q 1Q 2Q 3Q 4Q Source: Moscow Exchange operational information and Consolidated Financial Statements 1 Trading volumes on fixed income market include placements 24

25 11% Derivatives Market: shift in product mix Trading volumes millions of contracts 23 Fee & commission income RUB mln 1, % +5% % 1% % 2% 53% 41% 27% 27% 25% 20% 1, Q 357 4Q Volatility index Interest rates Commodities % 1% 3% 40% 1% 49% 29% 25% 27% 24% 1Q 434 1Q % 274 1% 42% 1% 31% 25% 2Q +41% 335 2Q % 1% 51% 26% 21% 3Q 364 3Q Currencies Equities Indices % 1% 64% 20% 15% 4Q 504 4Q Open interest millions of contracts, daily average % 14.0 Comments Q Q +52% Q Q Q Increased volatility on FX Market led to 63% YoY growth in FX derivatives trading Risk balancing between FX and Derivatives Markets, a new functionality launched in July, contributed to higher market activity in FX derivatives segment As a result, trading volumes of FX derivatives comprised 53% of total trading volumes on Derivatives Market versus 41% in Trading volume of options grew by 43% YoY and comprised 9.4% vs 8.3% in of total derivatives trading volumes Fee and commission income increased 5% YoY in Source: Moscow Exchange operational information and Consolidated Financial Statements 25

26 21% Money Market: solid demand for on-exchange services Trading volumes RUB trln % 204 2% 10% 34% 12% 59% Fee & commission income RUB mln 2,531-7% +28% % 49% 3,235 1 MosPrime rate, % Deposit and credit operations REPO with CCP % 30% 4% 58% 4Q 654 4Q % 34% 8% 51% 1Q 580 1Q 8.3-3% 47 26% 54% 2Q +80% 712 2Q 9% 11% % 3Q Inter-dealer repo REPO with the CBR 767 3Q % 15% 12% 14% 27% 26% 47% 4Q 1,176 4Q Comments Source: Moscow Exchange operational information and Consolidated Financial Statements 1 Overnight rate, average for the period 2 vs REPO with CCP trading volumes RUB bln 2,355 4Q 3,729 1Q 4,905 2Q 7,238 3Q 9,157 4Q REPO with CCP remained the most rapidly growing product (increased 6.3x YoY), as market players prefer to manage counterparty risk by using on-exchange infrastructure In February the CBR shifted to 1-week repo auctions instead of overnight auctions, which were utilized as a fine-tuning mechanism. In addition, 1-year repo with the CBR was added in the product pipeline in Q4. As a result, on-exchange trading volumes contracted, but longer average maturity led to higher fee income, since both volumes and maturity are the basis for fees Total volumes of REPO transactions in MOEX Group, including REPO with collateral management services, increased 11% YoY 2 In Q4 MOEX launched FCY-repo with settlement in foreign currencies with the CBR and on the inter-dealer market, which contributed to higher volumes 26

27 22% FX Market: swap and spot volume growth driven by FX volatility Trading volumes CNY/RUB trading volumes RUB trln 6.4 Spot Swap 1 Volatility USD/RUB 6.8 RUB bln % +54% % 63% % 66% 43 33% 67% 54 35% 65% 53 30% 70% 56 31% 69% 66 39% 61% 2.8 1Q 6.5 2Q 9.9 3Q Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q Fee & commission income Comments RUB mln +41% 3,408 2, Q 799 1Q +64% 743 2Q 817 3Q 1,048 4Q In spot market trading volumes increased 36% YoY driven by increased volatility, which led to higher activity by all groups of market participants Swap transaction volumes increased 53% YoY amid the growing demand from local banks to manage liquidity positions and hedge FX risks Trading in the CNY/RUB currency pair continued rapid growth. New record high of RUB 129 bln reached in 4Q Source: Moscow Exchange operational information and Consolidated Financial Statements 1 Calculated as daily standard deviation of the USD/RUB exchange rate for the period 27

28 NSD: collateral management services drive F&C growth 20% Assets on deposit (average for the period) RUB trln % % 3% 15% 35% 19% 26% +26% Fee & commission income for depository & settlement services RUB mln +37% 36% 17% 24% Other Tradable equities Equities held at the long-term safekeeping accounts % 16% 3% 16% 40% 17% 23% 4Q 37% 17% 24% 1Q +13% % 15% 36% 16% 23% 2Q OFZ Corporate and regional bonds % 16% 37% 16% 24% 3Q % 14% 36% 17% 24% 4Q Comments Solid fee and commission growth in depository & settlement services was driven by both an increase in assets under custody and a higher number of inventory transactions in the reporting period due to strong demand for collateral management services Collateral management system for REPO transactions generated appr. 1/5 of income from depository and settlement services in 4Q 1 In, NSD was recognized as a systemically important financial institution by the CBR: - a nationally important payment system - a nationally important CSD 3, % 2, Q 1Q 2Q 3Q 4Q Source: Moscow Exchange operational information and Consolidated Financial Statements 1 according to Moscow Exchange operational information 28

29 Other fee & commission income 8% Other fee & commission income 1 RUB mln 1,015 21% 30% 49% +26% 1,283 27% Listing and other fees related to Securities market Information services Sale of software and technical services +55% % % % 28% 14% 26% 27% 39% 43% 29% 27% 39% 46% 47% 39% 45% 29% Comments Other fee & commission income grew by 26% YoY mainly driven by higher information services and listing fees Information services fees were driven by additional payment collections made by the exchange as a result of information audit 61% YoY increase in listing fees was driven by a new pricing structure following the completion of the listing reform 4Q 1Q 2Q 3Q 4Q Source: Consolidated Financial Statements 1 Not including other fee&commission income as presented in financial statements 29

30 Interest income: growth driven by higher interest rates and client balances Investment portfolio 1 (average daily value) Interest income RUB bln Moscow Exchange own funds Client funds RUB bln 2 Interest and other finance income 3 MosPrime rate, % 3 LIBOR rate, % Effective yield, % +103% 700 7% % 93% 89% % 89% % 90% +148% 711 7% 93% 743 7% 93% 916 6% 94% % % Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q Clients funds by source 4Q 8% 13% 80% FX market Securities market Derivatives market Clients funds by currency 29% 19% 18% 40% 19% 46% 57% 49% 34% 50% 25% 20% 23% 36% 32% 4Q 1Q 2Q 3Q 4Q Investment portfolio by type of asset 4Q 1% 9% 5% 9% 75% FX deposits and curr. accounts Curr.accounts in RUB RUB securities Deposits in RUB FX securities Other 4 RUB USD EUR Source: NFEA, Bloomberg, Moscow Exchange operational information and Consolidated Financial Statements 1 Based on average daily investment portfolio according to management accounts 2 Interest and other finance income includes interest and other finance income, interest expense, net loss on financial assets available-for-sale, foreign exchange gains less losses 3 Average daily rate for the period 4 Share of other currencies is close to zero 30

31 NCC capital target set at RUB 51 bln for 2015 Approach to setting target capital CBR regulation of capital adequacy ratio Risk weighted assets (RWA) less provisions Market risk (according to 387-P) Operational risk Core Tier 1 ratio (N1) >10% CCP Stress-tests Market risk Credit risk CCP risk Capital should be sufficient to (i) cover potential losses under a stress scenario and (ii) keep business operational NCC capital (eop) RUB bln 51,0 38,9 41,4 28,8 13, Current Target 2015 Key factors that impacted the target capital: Rapid growth of market participants balances in, particularly FX denominated Ruble devaluation Expected abolishment of temporarily requirements for RWA in FX set by the CBR under 211-T regulation Key factors to watch: Changes in client balances Interest rates in the US and EU MOEX and CBR collaboration on regulation developments on NCC as a Central counterparty (CCP) 31

32 Operating expenses Operating expenses RUB mln Administrative and other operating expenses Personnel expenses +5% 9,857 10, % 48% 51% 3,218 2,912 2,564 2,365 2,226 51% 56% 48% 46% 46% 49% 52% 44% 52% 54% 54% 49% 4Q 1Q 2Q 3Q 4Q Major expense items RUB mln Change YoY Personnel expenses % Administrative and other operating expenses, including % Amortisation of intangible assets % Professional services % Depreciation of property and equipment % Rent and office maintenance % Taxes other than income tax % Market maker fees % Total % Cost income ratio 40.1% 34.1% - Headcount development Comments 1,692 December (EOP) -3% 1,636 December (EOP) Source: Moscow Exchange operational information, Consolidated Financial Statements Operating expenses increased 5% YoY in, two times lower than the reported inflation level Administrative and other operating expenses remained under control and declined by 1% YoY due to lower spending on market makers, depreciation of property and equipment, and lower taxes other than income tax Personnel costs increased 12.0% YoY driven by additional accruals for employee annual bonuses of RUB 163 mln on the back of stronger financial performance, as well as creation of unused vacation provisions of RUB 114 mln Excluding additional bonus accruals and vacation provisions, personnel expenses increased 4.4% YoY 32

33 Revised Capex & Opex plans due to FX translation effect 2015 budget review with average RUB/USD rate of 70 vs 45 resulted in: Maintenance capex: Expected up to RUB bln in 2015 Capex related to new data center, IT-architecture unification and other projects: Expected up to RUB bln in 2015 Operating expenses RUB bln 5.4 Personnel expenses % Operating expenses % The growth rate for personnel expenses is expected to be below inflation at 10-13% Expected total Opex growth rate revised up to 23-27% due to revision of IT-expenses and professional services FX rate Organic change growth 2015 FX rate change Organic growth 2015 Importantly, the business is hedged on the revenue side as FX denominated revenue growth driven by translation effect is expected to more than offset cost expansion 33

34 Appendix 34

35 Consolidated Statement of Financial Position In thousand rubles December 31, December 31, % chg. December 31, /December 31, Assets: Cash and cash equivalents % Central counterparty financial assets % Financial assets % Property and equipment and intangible assets % Goodwill % Other assets % Total Assets % In thousand rubles December 31, December 31, % chg. December 31, /December 31, Liabilities: Balances of market participants % Central counterparty financial liabilities % Distributions payable to holders of securities % Other liabilities % Total Liabilities % Total Equity % Total Liabilities and Equity % Source: Moscow Exchange, Consolidated Financial Statements 1 Financial assets at fair value though profit or loss, Due from financial institutions, Assets held for sale, Investments available-for-sale, Investments in associates 2 Current tax prepayments, Deferred tax asset, Other assets 3 Loans payable, Liabilities related to assets held for sale, Deferred tax liability, Current tax payables, Other liabilities 35

36 Consolidated Statement of Comprehensive Income In thousand rubles Three-month period ended December 31, Three-month period ended December 31, % chg. 4Q/ 4Q Year ended December 31, Year ended December 31, % chg. / Fee and commission income % % Interest and other finance income % % Other operating income % % Operating Income % % Administrative and other operating expenses % % Personnel expenses % % Operating Expense % % Operating Profit % % Interest expense in respect of written put option over own shares Share of profit/(loss) of associates % % Profit before Tax % % Income tax expense % % Net Profit % % Earnings per share Basic earnings per share, rubles % % Diluted earnings per share, rubles % % Source: Moscow Exchange, Consolidated Interim Financial Statements 1 Interest and other finance income, Interest expense, Net loss on financial assets available-for-sale, Foreign exchange gains less losses 36

37 SPO of the CBR stake in MOEX highlights Key information July Secondary public offering (SPO) of the CBR share in MOEX in form of ABB 1 Deal amount: RUB 16 bln (USD 469 mln) The bookbuilding period The Seller The book was opened: July 1st at 7pm The book was closed: July 2nd before trading hours The Central Bank of Russia The transaction form 100% secondary offering in form of ABB 1 Issuer Security Trading venue Demand Price OJSC «Moscow Exchange MICEX-RTS» Ordinary shares Moscow Exchange The book was multiple times oversubscribed 60 RUB per share Discount vs market 7.8% (Last day close price RUB 65.05) Lock-up period Global coordinators Global bookrunners 180 days J.P. Morgan, Goldman Sachs, Sberbank CIB, VTB Capital Citi and Gazprombank Distribution by geography Distribution by investors Highlights Scand. countries 7.0% Asia 9.6% Middle East 10.8% Cont. Europe 6.4% US 11.5% Other 0.6% Russia 34.6% UK 19.5% Sovereign funds 43.1% Brokers 0.3% Hedgefunds 19.5% Long only funds 37.2% 1 ABB accelerated bookbuilding 2 Based on Dealogic and FactSet data, calculated compared to average discount for secondary Russian deals since 2010 The largest Russian SPO since spring The first public equity offering of local shares only in, which was priced with lower than average discount despite the material deal size (63x 3-month ADTV) 2 The book was multiple times oversubscribed and dominated by high-quality sovereign wealth funds and long only funds 37

38 DR holders pay substantial EXTRA FEES to depositary banks Fees to be paid to depositary bank for some of DR programs of the Russian companies DR program Depositary Service Fee 1 (DSF), USD per DR Dividend Fee 2, USD per DR Dividend Fee as % of dividend amount 3 DRs cancellations fee, USD per DR RusHydro BoNY Mellon % 0.05 TGK-1 BoNY Mellon % 0.05 VTB Bank BoNY Mellon % 0.05 TMK BoNY Mellon % 0.05 MMK BoNY Mellon % 0.05 Sberbank BoNY Mellon % 0.05 Gazprom BoNY Mellon % 0.05 Surgutneftgaz-p BoNY Mellon % 0.05 Russian Grids BoNY Mellon % 0.05 Lukoil BoNY Mellon % 0.05 Norilsk Nickel BoNY Mellon % 0.05 Acron Deutsche Bank % 0.05 Mechel Deutsche Bank % 0.05 MTS JP Morgan % 0.05 Rosneft JP Morgan n/a 0.05 Phosagro Citi % 0.05 Average % 0.05 Gross DSF and dividend fees calculated for Top-3 international funds holding DRs of Russian companies 4 Fund A Fund B Fund C USD USD USD Cost of cancellations all DR in portfolios to local shares for Top-3 funds Fund A Fund B Fund C USD USD USD Depositary service fee and Dividend fee are to be paid by DR holder to the depositary bank while there are no such fees for holders of local shares All DRs cancellations operations are also charged 0.05 USD per DR DR dividend income in case of non disclosure of beneficial owners taxed at a 30% rate from 6 (1) Service fees are charged annually, in arbitrary date. Calculated based on number of DR on client account on the record date (2) Dividend fees are charged when dividends are paid (3) As % of dividend amount after tax (4) Calculations based on Thomson Reuters data as of June (5) Data on depositary service fees for these companies are not available. Indicative numbers based on average level of depositary service fee for DR of Russian companies are used for the purposes of this presentation. (6) Federal Law of FZ came into force January 1, Source: BNY Mellon, Deutsche Bank, JP Morgan, Citi, Thomson Reuters 38

39 Disclaimer NOT FOR RELEASE OR DISTRIBUTION OR PUBLICATION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN. This presentation has been prepared and issued by Open Joint Stock Company "Moscow Exchange MICEX-RTS" (the Company ). Unless otherwise stated, the Company is the source for all data and assumptions contained in this document. Such data and assumptions are provided as at the date of this document and is subject to change without notice. Certain industry, market and competitive position data contained in this document come from official or third party sources believed to be reliable but the Company does not guarantee its accuracy or completeness. The Company does not intend to have any duty or obligation to update or to keep current any information contained in this presentation. Neither the presentation nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions as defined in Regulation S under the US Securities Act 1933, as amended (the Securities Act), except to qualified institutional buyers as defined in Rule 144A under the Securities Act. Any failure to comply with this restriction may constitute a violation of United States securities laws. The presentation is not an offer or sale of securities in the United States. Moscow Exchange Group has not registered and does not intend to register any securities in the United States or to conduct a public offering of any securities in the United States. This presentation does not constitute an advertisement or a public offer of securities in any jurisdiction. It is not intended to be publicly distributed in any jurisdiction. This document is only being made available to interested parties on the basis that: (A) if they are UK persons, they are persons falling within Articles 19 or 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005; or (B) they are outside the United Kingdom and are eligible under local law to receive this document. Recipients of this document in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements. This presentation is not a prospectus for purposes of Directive 2003/71/EC (and amendments thereto, including Directive 2010/73/EU, to the extent implemented in any relevant Member State and any relevant implementing measure in the relevant Member State) (the Prospectus Directive ). In any EEA Member State that has implemented the Prospectus Directive, this presentation is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This document does not constitute or form part of, and should not be construed as, an offer or invitation for the sale or subscription of, or a solicitation of any offer to buy or subscribe for, any securities, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any offer, contract, commitment or investment decision, nor does it constitute a recommendation regarding the securities of the Company. The information in this document has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information, assumptions or opinions contained herein. None of the Company, or any of its subsidiaries or affiliates or any of such person's directors, officers or employees, advisers or other representatives, accepts any liability whatsoever (whether in negligence or otherwise) arising, directly or indirectly, from the use of this document or otherwise arising in connection therewith. This presentation includes forward-looking statements. All statements other than statements of historical fact included in this presentation, including, without limitation, those regarding MOEX financial position, business strategy, management plans and objectives for future operations are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance, achievements or industry results to be materially different from those expressed or implied by these forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we expect to operate in the future. Important factors that could cause our actual results, performance, achievements or industry results to differ materially from those in the forward-looking statements include, among other factors: perception of market services offered by the Company and its subsidiaries; volatility (a) of the Russian economy and the securities market and (b) sectors with a high level of competition that the Company and its subsidiaries operate; changes in (a) domestic and international legislation and tax regulation and (b) state policies related to financial markets and securities markets; competition increase from new players on the Russian market; the ability to keep pace with rapid changes in science and technology environment, including the ability to use advanced features that are popular with the Company's and its subsidiaries' customers; the ability to maintain continuity of the process of introduction of new competitive products and services, while keeping the competitiveness; the ability to attract new customers on the domestic market and in foreign jurisdictions; the ability to increase the offer of products in foreign jurisdictions. Forward-looking statements speak only as of the date of this presentation and we expressly disclaim any obligation or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation as a result of any change in our expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding such future performance. 39