Investor presentation

Transcription

1 February 2013 June 2014 Investor presentation

2 Well-positioned attractive investment opportunity 2 Successful track record of changes 3 Strong operating and financial results 2

3 GER RUS CHN BRA ITA FRA USA UK BRA IND USA FRA JPN ITA RUS CHN GER UK IND JPN (3,8% ) (3,6% ) (0,4%) (0,7%) (2,5%) (3,0%) (3,2%) (4,0%) (5,8%) (6,1%) (8,5%) (9,5%) (2,5% ) (2,3% ) (1,6% ) 0,7% 0,8% 1,6% 2,0% 6,2% USA CHN JPN GER FRA UK BRA RUS ITA IND RUS CHN IND BRA GER UK FRA USA ITA JPN Russian capital market has significant potential Large economy (#8 globally) Nominal GDP (2013E, USD trn) with low government leverage Sovereign debt 1 as % of GDP (2013E) #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 16,7 244% 8,9 5,0 3,6 2,7 2,5 2,2 2,1 2,1 1,8 14% 23% 67% 68% 80% 92% 93% 106% 132% strong fiscal policy Budget balance 2 as % of GDP (2013E) and current account ratio Current account as % of GDP (2013E) Developed markets Emerging markets Source: Nominal GDP, Sovereign debt as % of GDP IMF; Budget balance Economist Intelligence Unit; Equity market capitalisation to GDP WF E, IMF 1 Total gross debt (both local and foreign currency ) ow ed by government to domestic residents, foreign nationals and multilateral institutions such as the IMF, expressed as a percentage of GDP 2 C entral gov ernment receipts minus central government outlays, as a percentage of GDP 3

4 UK USA FRA JPN IND BRA CHN RUS Relative underpenetration leaves growth opportunities on all markets Equity market capitalisation to GDP 1 Corporate debt to GDP (2013E) (2013E) 178% 144% 131% 91% 65% 47% 44% 36% 153% 90% 75% 45% 36% 19% 18% 8% Japan UK USA Germany India Brazil China Russia Interest rate derivatives open position to GDP (2013E) 379% 54% 29% 0% 0% 0% Germany USA Brazil Russia China India Developed markets Comments Russian capital and derivatives markets has significant upside 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 CBR policy Emerging markets Source: SCIB, Moscow Exchange, BIS, Rosstat 1 - 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) 4

5 USA ITA KOR FRA POL UK GER JPN RUS 3 Domestic retail and institutional demand growth provides upside for capital markets development Allocation of local pension fund assets into equity Share of capital market instruments in the retail savings Current allocation of Russian pension fund assets (2013) 1 (2013) Share of mutual funds in retail savings 69,3% 2,4% 2,3% 10,4% Cash Deposits 15,6% Fixed income Equities Other 12% 11% 32% 7% 20% 10% 8% 7% 2% 1% 21% 20% 18% 20% Share of other investments in retail savings Shares of equities in retail savings 12% 9% 1% 6% 4% 4% 12% 9% 7% 8% Equity exposure of pension funds (2013) 57% 54% 48% 50% 40% 33% 35% 29% 2,4% RUS BRA 2 CHE NLD JPN CAN GBR AUS USA Comments Russian equities market is underrepresented by the domestic investor base Recent regulatory reforms such as corporatization of private pension funds and introduction of tax-advantaged Individual Investment Accounts are expected to stimulate domestic demand for capital market instruments Source: O ECD, investfunds.ru, FSFM, Economist Intelligence Unit, Russian State Statistics Agency (Rosstat) 1 O bligatory savings managed both by NPFs (Non-state pension funds) and Pension fund of Russia 2 C hile 3 Rosstat does not prov ide the detailed breakdown 5

6 Moscow Exchange is the major exchange in Russia and a leading exchange globally One of the largest in fixed income (Jan Dec 2013) 1 Rank Exchange Country Trading vol. (USD bln) Incl. REPOs 1 BME Spanish Exchanges Spain Moscow Exchange Russia LSE UK NASDAQ OMX USA (Europe) Johannesburg SE South Africa Korea Exchange Korea Colombia SE Colombia Oslo Børs Norway Borsa Istanbul Turkey Tel Aviv SE Israel 282 Top 8 in derivatives (Jan Dec 2013) FIA ranking Rank Exchange Country Contracts traded (mln) 1 CME Group USA ICE incl. NYSE Euronext 3 USA EUREX Germany NSE India BM&FBOVESPA Brazil CBOE Holdings USA NASDAQ OMX 3 USA Moscow Exchange Russia Korea Exchange Korea Multi Commodity Exchange India 794 Top 19 in equities (Jan Dec 2013) 2 Rank Exchange Country Mkt Cap Securities Trading vol. (USD bln) listed (USD bln) 1 NYSE Euronext 3 USA NASDAQ OMX 3 USA Japan Exchange 4 Japan London SE Group UK Hong Kong Exchanges Hong Kong Shanghai SE China TMX Group Canada Deutsche Börse Germany SIX Swiss Exchange Switzerland Shenzhen SE China Moscow Exchange Russia Top 12 public exchanges by market capitalization 5 Rank Exchange Country Mkt Cap (USD bln) 1 CME USA HKEx Hong Kong ICE NYSE USA Deutsche Börse Germany BM&FBovespa Brazil LSE Group UK Dubai Financial Dubai ASX Australia Japan Exchange Japan NASDAQ OMX USA SGX Singapore Moscow Exchange Russia 4.2 Source: Moscow Exchange, WFE, Bloomberg, FIA 1 Due to different methodologies applied, data on fixed income trading may not be directly comparable among exchanges 2 Top equity trading exchanges are ranked by market capitalisation of public companies traded on the exchange 3 Includes both US and European market v olumes and capitalization for equities market; both US and European market volumes for deriv atives market 4 Includes both Tokyo and Osaka exchanges trading volumes, capitalization reflects Tokyo exchange only 5 Market capitalization of public exchanges based on Bloomberg data as of June 10,

7 Highly diversified product offering Indexes FX Local and foreign new single stocks Commodities Interest rates new Listing Local and foreign shares, DRs new (Rusal, QIWI, Lenta) International ETFs new (on Gold, US Treasury Bills, Russian corporate Eurobonds and on various MSCI indices) EQUITIES Sovereign bonds Municipal bonds Corporate bonds ABS, MBS Eurobonds (Issued by Ministry of Finance with different maturities) Swap instruments (various tenors on USD, EUR, CNY currencies) Spot instruments (USD, EUR, CNY new and CIS currencies new ) COMMODITIES Credit & deposit operations REPO with CCP new REPO with CBR with Collateral Management System new Inter-dealer REPO Spot and swap precious metals new (Gold, Silver) Grain market new (Futures on wheat, rice and rice cereal) 7

8 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 May 2014) Comments RUB bln 10,1 13,2 1 Jan Jan ,8 32,7 1 Jan Jun 2014 RUB bln FX 882,6 Derivatives 218,7 REPO with CCP 66,4 Equities 44,4 Fixed income 37,8 OTC derivatives 0,023 Commodities 0,004 Well-capitalized NCC (Fitch rating BBB) as CCP for all asset classes Bank of Russia qualified CCP status Centralized clearing of OTC derivatives National Settlement Depository 2 (NSD) capital Assets in deposit 3 Comments RUB bln RUB bln Servicing Euroclear & 8,6 Clearstream accounts 5,4 6,0 7, Safekeeping and settlement services Repo collateral management Repository for OTC trades 1 Jan Jan Jun Jun Dec Dec Dec Mar 2014 AA- rating by Thomas Murray 4 Source: Moscow Exchange operational information 1 F igures in accordance w ith Russian Accounting Standards as reported to and disclosed by the CBR on a monthly basis 2 Russian C entral Securities Depository 3 A ssets in deposits based on C ompany operational data 4 Thomas Murray leading global agency for depository services 8

9 Strong non-transactional revenue based on post-trade services and diversified fee and commission income Meaningful non-transactional income Other operating income 6% Nontransactional revenue 55% 2 Operating income structure Fees & commissions ex. Depository& settlement 39% and diversified F&C income Information Bonds services & sale 6% of software 7% Derivatives 12% Equities 13% Other 2% MM 16% 1 FX 23% Fee & commissions structure Depositary & Settlement 21% generated on all main markets Derivatives 12% MM 39% Equities 2% Bonds 2% FX 45% Trading volumes structure Comments Thanks to the established post-trade infrastructure Moscow Exchange has ~55% of non-transactional revenue, mainly in form of interest income, as well as depository services, IT services and sale of software and technologies Fees & commissions income is well-diversified with the largest contribution of 23% by FX-market, followed by Money market (16%) and Equities (13%) Source: Moscow Exchange operational data and IFRS financial statement 1 Include other income related to securities market 2 Includes interest and other finance income, settlement and depository services, sale of software and technologies and IT serv ices 9

10 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 Key highlights 2011 merger of MICEX with RTS Fee & commission income evolution Equities+Bonds Derivatives FX & MM Depositary & settlement Other 2012 CSD launch 2013 migration to T Euroclear and Clearstream settlement services for Russian government and corporate bonds 6% 10% 8% 18% 26% 8% 42% 17% 18% 35% 39% 11% 12% 27% 23% A ccording to Moscow Exchange IFRS financial statement RTS data is consolidated from June 29, Include other income related to securities market in Include income from Information services & sale of software in , include income from Information services & sale of softw are and other income related to securities market in 2013 FX: 19% MM: 20% Listings: 2% Bonds: 11% Equities: 11% 10

11 On the right track: changes of the regulatory framework The law on Central Securities Depository (CSD) N414-FZ dated : Reduced stakeholders risks and removed the key barrier for trading in Russian local shares Amendments to the law On Clearing and clearing activities N 7-FZ dated : Allowed to create united CCP for all MOEX markets Changes in the Tax Code : Removed barriers for Euroclear и Clearstream operations with securities Changes in the law On securities market : Simplified securities issuance Shaped regulation on general meeting of bondholders Improved regulation on securitization of financial assets Amendments to the Government decree No 379 On imposing additional restrictions on investment of pension savings dated : Pension savings available for investing in companies during privatization The CBR letter No 06-52/2463 On the Corporate Governance Code dated : Established new corporate governance standards linked with the new listing law EQUITIES CORPORATE GOVERNANCE Infrastructure NEW INSTRUMENTS COMMODITIES Amendments to the FSFM Order No 13-63/pz-n dated ): Eased criteria for foreign ETFs to be admitted to trading on the exchange Amendments to the law On Non- Government Pension Funds N75-FZ dated and the law N410-FZ dated : Removed the requirement of positive result by the end of each year Increased the investment horizon: change of NPF manager once in 5 years instead of once a year Changes in the Tax Code : Tax incentives for individual investors (individual investment accounts and tax exemptions for securities held of >3years) The FSFM Order No 13-62/pz-n On the admission of securities to organized trading dated : Established a new listing structure Specified new listing criteria for issuers linked to a new Corporate Governance Code 11

12 Key growth areas for 2014 and beyond Equities Fixed Income Derivatives International demand increase on the back of ICSD access and DMA offering by international banks Domestic demand increase driven by regulatory reforms New listings (IPOs/SPOs) Listings volumes growth as alternative to bank lending ICSD access to corporate bonds New products: ETFs, ABSs, MBSs and CDOs Further simplification of bonds issuance procedures Attraction of international investors to the market Development of options and interest rate derivatives OTC derivatives clearing and product standardisation Cross-margining with spot market FX Money Market Depositary and settlement Attraction of international investors to the market Organic growth due to increase in volatility following switch of CBR from FX corridor targeting to inflation targeting Unified collateral and clearing pool with derivatives market On-exchange REPO with CBR with collateral management by NSD Penetration of inter-bank lending market with REPO with pool of securities and REPO with collateral management system Expansion of collateral base (eurobonds and Russian DRs) Tri-party and collateral management services Trading data repository services development Launch of the corporate information and price information centre 12

13 1 Well-positioned attractive investment opportunity Successful track record of changes 3 Strong operating and financial results 13

14 MOEX has delivered on strategic goals announced at IPO Target Delivery stage 1 2 Upgrade infrastructure to international standards Deliver T+2 settlement Establish fully functioning CSD Establish integrated CCP function Opening up of MOEX to international investors T+2 launched in March 2013 and implemented fully in September 2013 in equities market Launch of the CSD in November 2012 removed the key barrier for trading in Russian local shares for foreign investors: Direct and simplified settlement Lower costs Direct participation in corporate actions National Clearing Centre (NCC) is the CCP for all MOEX markets; NCC has been additionally capitalized with RUB 9 bln in 2013, equity capital reached RUB 32.7 bln (as of June 1, 2014) Euroclear and Clearstream offer settlement services for Russian sovereign and corporate bonds; equities are expected to follow in July 2014 Six global banks (Citigroup, Credit Suisse, Merrill Lynch, Morgan Stanley, UBS and Deutsche Bank 1 ) offer Direct Market Access (DMA) to securities trading on MOEX; three global banks are expected to follow by the end of Attract liquidity to securities platform of MOEX Re-attracted listings to MOEX Modernisation to international standards of listing rules and disclosure requirements Continued incentives to increase local demand and supply (tax incentives for retail, pension funds reform, privatisation) Development of new products (foreign stocks and DRs, ETFs, ABS, CDO, MBS and others) 4 Adapt world-class governance standards 8 independent non-executive directors appointed to MOEX Board New hires with vast international experience IPO of MOEX opens up its investor base Treasury shares were cancelled in the beginning of 2014 Establish regular investor 5 interaction Established world-class level of investor interaction with regular roadshows, conferences and investor meetings 1 Deutsche Bank started to offer DMA in early

15 Impact of T+2 launch on equity market Average daily trading volumes (ADTV) on equity market 1 in RUB bln % % ADTV growth following T+2 25% ADTV in September 2013-April 2014 vs January-August % Moscow Exchange 4 LSE 4 Jan-Aug 13 T+0 Sep-Dec-13 T+2 Jan-May 14 Following transition to T+2, trading volumes growth on Moscow Exchange exceeded the growth of DRs traded on LSE by almost 3 times Average daily client balances RUB bln Jan- Aug 13 T+0 Other markets Securities market 706 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 T Comments Following the launch of T+2 settlement cycle: Smooth and successful customers transition to the new settlement cycle Average daily trading volume growth Six global banks offer Direct Market Access (DMA) to securities trading on MOEX Total amount of clients balances grew by 26% in September April 2014 compared to the first 8 months of 2013 Source: Moscow Exchange operational data 1 Daily average secondary trading volume in EOB on Main market (T0,T+2), including negotiated deals with CCP 2 A v erage daily trading volumes in September-December 2013 v s January-August A v erage daily trading volumes in January-May 2014 v s September-December Trading v olumes in Moscow Exchange main trading mode vs LSE electronic order book (IOB), calculated for 32 dual-listed companies 15

16 Equities are expected to be eligible for Euroclear and Clearstream settlement services starting from July 2014 Jul 2014 Sep Nov 2014 Jan 2015 Jan 2016 According to the law*, Equities will be eligible for Euroclear and Clearstream settlement services starting from July 1, 2014 Market anticipates Clearstream to launch equities settlement services for clients starting from July 1 and Euroclear from July 20 (after the fist part of regulation of electronic voting will pass Russian State Duma) Temporary legislative amendments to introduce electronic voting Other legislation for corporate actions electronic voting to be developed by Jan 2015 Introduction of cascade approach and replacement of paper-based corporate actions documents with electronic documents Recognition of collective investment funds, simplified procedures of disclosure, cancellation of mandatory beneficial owners disclosure Clarification of tax calculation procedure for nominee holders Source: Moscow Exchange data * F ederal Law No. 414-FZ On the Central Depositary 16

17 Raising the corporate governance standards Strong corporate governance MOEX shares average daily trading volume 2 8 of 19 members (42%) of Supervisory Board are Independent Directors 1 MOEX is a pioneer of new Corporate Governance Code Management and shareholder interests aligned through 3-year stock option programme Attractive dividend policy: minimum pay-out ratio based on net profit under IFRS of 40% in 2014 (for 2013 results) and 50% in 2015 (for 2014 results) and onward Established transparent and frequent financial and operating disclosure RUB mln Feb-Mar 2013 MOEX MSCI inclusion Q2013 Average daily trading volume Q Q April 2014 May 2014 Rank by trading volumes of most liquid shares on MOEX 3 Ownership structure as of May 12, Key takeaways Free float 43,9% CBR 23,5% Free-float grew to 44% from 31% following changes in shareholder s structure and treasury shares cancellation MICEX- Finance 2,6% 5 CIC 5,6% EBRD 6,1% VEB 8,4% Sberbank 10,0% Average daily trading volumes grew ~3 times since IPO and reached ~USD 7 mln More than 180 international and domestic institutional investors and more than 1,000 retail investors are among MOEX shareholders 1 A ccording to Russian definition of INEDs 2 Trading v olume in main trading mode (T0, T+2) 3 O rdinary and preferred shares 4 4.8% of shares held by the CBR as a result of repo transactions are included in the free-float 5 100% ow ned subsidiary of the Moscow Exchange 17

18 One of the highest dividend yields among global exchanges TOP 10 public exchanges by revenue in 2013 Revenue USD mln EBITDA margin 2013 % Dividend yield 2015E % Nasdaq OMX 3211 ASX 78,6 ASX 5,3 CME 2936 HKEx 71,4 CME 5,2 Deutsche Boerse 2543 BM&FBovespa 68,2 BM&FBovespa 4,9 ICE 1674 CME 67,4 Moscow Exchange 4,7 LSE 1377 Moscow Exchange 67,0 Deutsche Boerse 4,1 HKEx 1048 ICE 66,7 HKEx 3,4 BM&FBovespa 990 LSE 64,2 Japan Exchange 1,8 Japan Exchange 867 Japan Exchange 58,8 LSE 1,7 ASX 805 Deutsche Boerse 41,5 Nasdaq OMX 1,5 Moscow Exchange 772 Nasdaq OMX 27,6 ICE 1,4 Source: Bloomberg as of 18 June 2014, ICE including NYSE after the merger 1. F rom historical F inancial Statements for the stated period translated to USD using average exchange rate for the period 18

19 1 Well-positioned Developments since attractive IPO investment opportunity 2 Well-positioned Successful track attractive record of investment changes opportunity 3 Operating Strong operating and financial and financial results results 19

20 Financial Performance: Strong double digit EPS growth Operating income RUB bln +14% Net Profit RUB bln +41% % % % % +18% % % % % % 52% 52% 52% 51% 54% 60% Q2013 2Q2013 3Q2013 4Q Q2013 2Q2013 3Q2013 4Q2013 Interest and other finance income Fee&commission and other income Operating expenses EPS and key financial ratios RUB bln +5% 1Q % Basic EPS, RUB EBITDA margin 70% 68% Cost income ratio 37.4% 39.4% Q2013 2Q2013 3Q2013 4Q2013 Source: C onsolidated F inancial Statements 20

21 Operating income: record high fees and commissions Operating income breakdown Fee & commission income trends RUB bln % 52% % 52% +18% % 51% % 54% % 60% RUB mln +28% % % % +16% % Q2013 2Q2013 3Q2013 Interest and other finance income F ee&commission and other income % 13% 18% 17% 17% 11% 12% 1Q % 14% 16% 19% 20% 9% 11% 2Q2013 O ther fee&commission income Deriv atives market +23% % 12% 17% 20% 22% 9% 10% 3Q2013 Depositary and settlement services 4Q % 10% 21% 18% 19% 13% 10% 4Q2013 Money market Bond market Fee & commission income breakdown RUB mln % 12% 21% 23% 16% 6% 13% F oreign exchange market Equity market Equity market 1Q2013 Bond market Derivatives market Money market Foreign exchange market Depositary and settlement services Comments Fee & commission income increased by 18% YoY driven by FX market (+64% YoY), depositary and settlement services (+39% YoY) and equities (+28% YoY) Bond market (down 34% YoY) performance was affected by higher interest rates and overall uncertainty in economy. However, it was more than offset by strong performance in all other markets Growth in trading volumes and fee&commission income on equity market was due to the migration to Т+2 Source: C onsolidated F inancial Statements O ther fee & commission income includes income from sale of IT and information services, income from listing, subscriber fees and entrance fees 21

22 13% Equity Market: trading volumes and fee & commission income Trading volumes 1 RUB trln MICEX Index (average for the period) Equities XX% Velocity Russian equities trading volume 2, Moscow Exchange vs LSE % 48% 44% 47% 46% 47% 51% 47% 46% 44% 41% 39% 37% 44% 46% 47% 42% 45% 32% 38% 36% % % 45% % 56% 53% 54% 53% 49% 53% 54% 56% 59% 61% 63% 56% 54% 53% 58% 55% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Moscow Exchange 3 3 LSE - order book 1Q2013 2Q2013 3Q2013 4Q2013 Fee & commission income RUB mln +28% Q2013 2Q2013 3Q2013 4Q2013 Comments Both trading volumes and velocity increased due to migration to T+2 supported by the volatility spike Despite market turbulence in March, risk systems worked well: there were no trading halts and no defaults In March-April 2014 more than of new accounts were opened on the securities market The share of non-residents on equity market grew to 46% in (from 40% in 2013) Source: Moscow Exchange operational information and Consolidated Financial Statements, equity and bond market fee&commission income for Q w as not reported in IF RS interim statements management accounts data are used for the purposes of presentation 1 V olumes on both primary and secondary markets 2 Moscow Exchange and London Stock Exchange data for Russian dual-listed companies 3 O nly electronic order book deals 22

23 6% Fixed Income Market: trading volumes and fee & commission income Trading volumes 1 RUB trln Sovereign bonds Corporate, municipal and other bonds -30% Q2013 2Q2013 3Q2013 4Q Comments Bond market trading volumes drop both in corporate and sovereign sectors as a result of high market uncertainty, higher interest rates and exchange rate volatility Primary placements were affected by challenging market conditions In May 2014 the market reopened with a number of successfully completed placements by Megafon, Gazprombank and Unicredit Fee & commission income RUB mln % Key future drivers of growth: New placements as an alternative to bank lending Development of ICSD access to corporate bonds Further development of anonymous trading modes New products: new ETFs, ABSs, MBSs and CDOs 1Q2013 2Q2013 3Q2013 4Q2013 Source: Moscow Exchange operational information and Consolidated Financial Statements, equity and bond market fee&commission income for Q w as not reported in IF RS interim statements management accounts data are used for the purposes of presentation 1 Trading v olumes on bonds market include placements 23

24 12% Derivatives Market: volatility drives the growth Trading volumes Open interest millions of contracts millions of contracts, average for the period Volatility index Interest rates Commodities Currencies Equities Indices % % 2% +29% 269 1Q2013 2Q2013 3Q2013 4Q2013 Fee & commission income RUB mln +21% 247 3% 1% 42% 4% 2% 3% 42% 39% 40% 26% 27% 29% 29% 27% 28% 27% 27% 340 1% 1% 1% 49% 25% 24% Q2013 2Q2013 3Q2013 4Q2013 Source: C onsolidated F inancial Statements Comments 1Q2013 2Q2013 3Q2013 4Q2013 Increased volatility and activity on spot markets in was the key driver of derivatives trading volume growth. Volumes of FX contracts trading grew by 52% YoY, while its share up to 49% Open interest growth was driven by new institutional clients, including foreign clients, which contributed 45% of open positions as of the end of March 2014 Non-residents share increased to 44% in March 2014 (37% in 2013) of total trading volume Key future drivers of growth: Options and interest rates derivatives Deliverable derivatives OTC derivatives clearing and product standardisation Attraction of international investors to the market Cross-margining with spot markets 24

25 23% FX Market: close to two times growth of trading volume Trading volumes MOEX market share in FX trading volumes RUB trln Spot Swap Volatility USD/RUB 4.3 % in total RUB FX market in USD/RUB in EUR/RUB % 57% 1Q % 61% 2Q % 44 34% 66% 3Q % 67% 4Q % 65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar -14 Fee & commission income Comments RUB mln 487 1Q Q % 647 3Q Q FX market is the oldest organized domestic financial market (since 1992), liquidity center for RUB trading and price-maker for RUB-based currency pairs Spot trading volumes grew (+61%) due to increase in exchange rate volatility. Swap trading volumes grew (+122%) due to higher demand for interest rates instruments and refinancing Significant increase in trading volumes of CNY-RUB currency pair (more than 10 times) Increase in number of registered clients ~1,9 times: from as of end of 2013 to in Source: C onsolidated F inancial Statements 1 C alculated as annualised standard deviation of the USD/RUB exchange rate for the period 25

26 16% Money market: driven by demand for liquidity Trading volumes, incl. REPO with CBR RUB trln MosPrime rate, % 1 Deposit and credit operations Inter-dealer repo Repo with CBR REPO with CCP trading volumes RUB bln 2,353 1, , Q2013 Fee & commission income RUB mln 498 1Q Q Q % Q % 705 3Q Q Q Source: C onsolidated F inancial Statements 1 O v ernight rate, average for the period 1Q2013 Comments 2Q2013 Trading volumes growth was driven by strong demand for liquidity management instruments in higher interest rates environment Historically highest trading volumes of REPO with CCP (RUB 93 bln) were reached on March 3, 2014 Key future drivers of growth: Penetration of inter-bank lending market with REPO with pool of securities and REPO with collateral management system Expansion of collateral base (corporate bond placements to increase, eurobonds and Russian DRs to become eligible for collateral) On-exchange REPO with CBR with collateral management by NSD 3Q2013 4Q

27 21% Depositary and settlement services: important part of the post trade infrastructure Assets in deposit (average for a period) RUB trln Other Tradable equities % OFZ Equities held at the long-term safekeeping accounts Corporate and regional bonds Comments Solid fees and commissions performance was driven by both assets under custody growth and higher number of inventory transactions in the reporting period due to strong demand for collateral management services Collateral management system for REPO transactions generated ~ RUB 140 mln in 1Q2013 2Q2013 3Q2013 4Q2013 Fee & commission income RUB mln % Key future drivers of growth: Additional trading data repository services development Launch of the corporate information centre and price information centre Tri-party and collateral management services 1Q2013 2Q2013 3Q2013 4Q2013 Source: Moscow Exchange, Consolidated Financial Statements 27

28 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 Tri-party REPO service with collateral management by NSD REPO with CBR volume split RUB trln REPO with CBR through NSD On exchange REPO with CBR 20.9 Growing share of CMS 1 driven fees &commissions Split of depository and settlement fees and commissions CMS 16% CMS 19% % 8% % % 32% 99% 92% 100% 100% 100% 95% 80% 68% 26% 74% % 72% % 66% % 35% 65% 61% Safekeeping and other income 84% RUB 717 mln Safekeeping and other income 81% RUB 734 mln 4Q2013 REPO volume with CMS through NSD RUB bln 5,423 3,827 3,583 3,141 2,821 1, ,147 4,405 Comments In April 2013, NSD launched a new service of REPO transactions with CBR, which offers collateral management system (CMS) through Bloomberg terminal Strong customer s demand for collateral management service led to rapid growth of the transaction volume and additional fees& commission source for NSD As an expansion of the service offering, MOEX plans to launch REPO with CMS through the exchange terminal 1 C MS collateral management service. Under Moscow Exchange management accounts 28

29 Other fee & commission income 9% Other fee & commission income RUB mln Listing and other fees related to Securities market Information services Sale of software and technical services Other -2% Comments Information service performance was supported by RUB 21 mln of extra penalties received by the exchange from a large corporate customer Listing fees were affected by lower market primary activity in the first quarter and expiration of previously issued securities Key driver of growth: listing fees increase effective from June Q2013 2Q2013 3Q2013 4Q2013 Source: Moscow Exchange operational information and Consolidated Financial Statements. Listing and other fees related to Securities market for Q w ere not reported in IFRS interim statements management accounts data are used for the purposes of presentation 29

30 Investment Portfolio: stable revenue source Investment portfolio 1 (average daily volume) RUB bln Moscow Exchange own funds Client funds Interest income RUB bln Interest and other finance income 2 MosPrime rate, % 2 LIBOR rate, % Effective yield, % +40% % 90% % 90% % 89% % 89% % 90% % Q2013 2Q2013 3Q2013 4Q2013 1Q2013 2Q2013 3Q2013 4Q2013 Clients funds by source 10% 26% 64% Clients funds by currency 20% 28% 52% Investment portfolio by type of asset 2% 17% 3% 16% 62% FX market Securities market Derivatives market RUB USD EUR FX deposits and curr. accounts Curr.accounts in RUB Deposits in RUB FX securities RUB securities Source: NFEA, Bloomberg, Moscow Exchange operational information and Consolidated F inancial Statements 1 Based on av erage daily investment portfolio according to management accounts 2 A v erage daily rate for the quarter 30

31 Operating expenses Operating expenses RUB mln Administrative and other operating expenses Personnel expenses +24% % 56% 48% 50% 52% 50% 48% 54% 44% 52% Major expense items RUB mln 1Q Q 2013 Change YoY Personnel expenses % Administrative and other operating expenses, including % Amortisation of intangible assets % Depreciation of investment in associate Professional services % Market makers fees % Depreciation of property and equipment % Rent and office maintenance % Taxes other than income tax % 1Q2013 2Q2013 3Q2013 4Q2013 Total % Cost income ratio 39.4% 37.4% - Headcount as of period end Comments 1682 March % 1659 March 2014 Source: Moscow Exchange, Consolidated Financial Statements 1 O ne-off impairment of inv estment in Ukranian subsidiary PFTS Staff costs remained the major cost item, up 29.9% YoY, driven mainly by a low-base effect as a result of the introduction of a new methodology for bonus accruals. Some bonuses for FY2014 were accrued in, while similar expenses for the full year 2013 started to be reflected in financials in the second half of the previous year Excluding accrued bonuses, personnel expenses growth would be 3.9% YoY Increase in administrative expenses was due to one-off impairment of investment in associated companies (~RUB 181 mln) in Ukranian subsidiary PFTS. Excluding one-off item, administrative expenses remained unchanged YoY 31

32 Conclusion MOEX has delivered on strategic goals announced at IPO and created value for shareholders MOEX has succesfully upgraded its infrastructure to international standards, which creates further upside potential MOEX is now focused on organic growth built on the further development of its post-trade infrastructure MOEX's diversified sources of revenue and integrated business model is resilient to the economic cycle MOEX plans to expand into new assets classes, products and markets Corporate governance benchmark attractive dividend policy and strong Supervisory Board MOEX is a heart of the Russian capital market and provides the comprehensive infrastructure for the Russian financial market 32

33 Appendix 33

34 MOEX is a liquidity centre for all sort of customers 2013 Equity market 4% 10% 11% 40% 35% 3% 11% 6% Russian funds Russian retail investors 34% Foreign investors Russian banks and brokers prop. trading 46% Russian corporates Fixed Income market 9% 8% 63% 2% 18% 12% 57% 10% 3% 18% Brokers, banks, Russian and international investment funds, retail investors are among MOEX clients Derivatives market 1% 9% 7% 23% 60% 8% 6% 34% 1% 51% MOEX saw growing trading volume driven by foreign investors successful infrastructure upgrades changes on equity market and structural attractiveness of derivatives market Money market FX-market Players shares remained stable with 84% of banks, 10% trustee, 8% brokers Players shares remained stable with 92% of banks, 6% trustee, 2% brokers Source: Moscow Exchange 34

35 Liquidity center: placements held exclusively on MOEX prevail IPO/SPO on Moscow Exchange 1 IPO/SPO of Russian companies on LSE IPO RUB 15 bln (USD 462 mln) February 2013 SPO RUB 14.7 bln 2 (USD 453 mln) April 2013 SPO RUB bln (USD 3.2 bln) Мay 2013 SPO RUB 14.7 bln 2 (USD 453 mln) April 2013 IPO RUB 34.7 bln (USD 1.1 bln) October 2013 IPO 4 RUB 34.3 bln (USD 952 mln) February 2014 IPO/SPO of Russian companies on NASDAQ SPO RUB 10.6 bln (USD 327 mln) SPO RUB 3.02 bln (USD 91 mln) SPO 3 RUB 9.2 bln (USD 286 mln) SPO RUB 18.6 bln (USD 607 mln) IPO/SPO 3 RUB 7.1 bln/9.2 bln (USD 229mln/286mln) June 2013 August 2013 October 2013 March 2013 May/October 2013 IPO/SPO of Russian companies on NYSE SPO RUB 19.1 bln (USD 602 mln) IPO RUB 41.3 bln (USD 1.3 bln) IPO 4 RUB 34.3 bln (USD 952 mln) IPO/SPO RUB 2.6 bln/3.1 bln (USD 84mln/96mln) October 2013 October 2013 February 2014 June/November 2013 Polymetal re-listing in Moscow completed in 2013 Additional mid-term supply: privatization placements to be held on MOEX 1 Not including small offerings in Innovation and Investment Market 2 F osagro SPO was executed on both Moscow Exchange and LSE 3 Q iw i SPO was executed on both Moscow Exchange and Nasdaq in O ctober 2013, QIWI IPO w as executed on NASDAQ in May Lenta IPO w as executed on both Moscow Exchange and LSE 35

36 Moscow Exchange trading volumes in January-May 2014 Equity market RUB bln +28% Fixed income market RUB bln -35% Derivatives market mln contracts +7% % % % Jan-May 2013 Jan-May 2014 May May Jan-May 2013 Jan-May 2014 May May Jan-May 2013 Jan-May 2014 May May Money market RUB bln +1% FX market RUB bln +62% % % Jan-May 2013 Jan-May 2014 May May Jan-May 2013 Jan-May 2014 May May Source: Moscow Exchange 36

37 Senior Management Executive Board MOEX Management Team successfully transformed and focused on delivering results Chairman of the Executive Board and CEO Alexander Afanasiev Deputy CEO Andrey Shemetov A ppointed Deputy Chairman of the Moscow Exchange Executive Board in 2012 Chief Financial Officer Evgeny Fetisov A ppointed Chief F inancial O fficer (C FO) and confirmed as a member of the Executiv e Board of Moscow Exchange in F ebruary 2013 Chief Operating Officer Dmitry Shcheglov In 2013 w as appointed Executive Director of O perations at the Moscow Exchange Deputy Head of the Project Center for the Integration since A pril 2011 Chief Information Officer Sergei Poliakoff Joined Moscow Exchange in 2013 Prev iously worked for Morgan Stanley, NatWest Securities and Deutsche Bank Managing Director of Securities Market Anna Kuznetsova Joined RTS in 2001 and served as Head of New Markets Dev elopment Managing Director of Money Market Igor Marich Joined MICEX in 2000 Prev iously worked for Elbim Bank as Head of the Securities Division Managing Director of Derivatives Market Roman Sulzhyk Prev iously headed Derivatives Trading Div ision in DB Moscow and was a Deriv atives trader at J.P. Morgan Managing Director of Risk and Clearing Luis Vicente Joined NCC as Chief Risk Officer in 2013 Prev iously, Risk Systems Director and Risk Management Director in Brazil's BM&F BO VESPA 37

38 Moscow Exchange Supervisory Board Supervisory Board Sergey Shvetsov Sergey Lykov Andrey Golikov Alexander Afanasiev Mikhail Bratanov Alexander Buzuev Nadezhda Ivanova Kirill Shershun Andrey Yumatov Bella Zlatkis Nicola Jane Beattie Sean Glodek Oleg Jelezko Martin Paul Graham Yuriy Denisov Jacque Der Megredichyan Anatoly Karachinsky Li Qingyuan Rainer Riess Title (Chairman of the Supervisory Board) First Deputy Chairman, Head of Financial Market Service, CBR (Deputy Chairman of the Supervisory Board) Member of the Executive Board, Deputy Chairman, VEB (Deputy Chairman of the Supervisory Board) Director for Investments and Commerce, Strana Detei CEO, Chairman of the Executive Board, Moscow Exchange Head of SG Securities Services - Russia & CIS, ROSBANK Advisor for the Board of Management, UniCreditBank Deputy Chairman, Director of the Consolidated Economic Department, Bank of Russia First Deputy Chairman of the Executive Board, CentroCredit Member of the Management Board, Bank of Moscow Deputy Chairman of the Management Board, Sberbank Senior Executive Director, Market Structure Partners Director, Member of the Executive Board, Russian Direct Investment Fund CEO, Da Vinci Capital Chairman of the Board of Directors, Secondcap Limited (LSE) Member of Supervisory Board, NCC; Co-Сhairman of the Board, NFEA Member of the Board of Directors, Russian National Association of securities market participants Chairman of the Board, IBS Group Senior Advisor, Fountainvest Partners Independent Advisor to exchanges and financial services companies Strategy Planning Committee Remuneration and Human Resources Committee Supervisory Board Committees Audit Committee Budget Committee Risk Committee Technical Policy Committee * Independent directors 38

39 Disclaimer NO T 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 contained in this document. Such data is prov ided as at the date of this document and is subject to change w ithout 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 C ompany does not guarantee its accuracy orcompleteness. 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 A merica, its territories or possessions, or distributed, directly or indirectly, in the United States of A merica, its territories or possessions as defined in Regulation S under the US Securities A ct 1933, as amended (the Securities Act), except to qualified institutional buyers as defined in Rule 144A under the Securities A ct. Any failure to comply with this restriction may constitute a v iolation 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 av ailable to interested parties on the basis that: (A ) if they are UK persons, they are persons falling within Articles 19 or 49 of the F inancial Services and Markets Act 2000 (F inancial Promotion) O rder 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 observ e any applicable legal requirements. This presentation is not a prospectus for purposes of Directiv e 2003/71/EC (and amendments thereto, including Directive 2010/73/EU, to the extent implemented in any relevant Member State and any relev ant 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 inv estors 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 w here such distribution, publication, av ailability or use w ould be contrary to law or regulation or w hich w ould require any registration or licensing w ithin such jurisdiction. This document does not constitute or form part of, and should not be construed as, an offer or inv itation 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 w ith, any offer, contract, commitment or inv estment 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 w arranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information 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 w hatsoever (w hether 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. A ll 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, w hich 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 forw ard-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in w hich 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 forw ard-looking statements include, among other factors: perception of market services offered by the Company and its subsidiaries; v olatility (a) of the Russian economy and the securities market and (b) sectors w ith a high level of competition that the C ompany 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 w ith rapid changes in science and technology environment, including the ability to use advanced features that are popular w ith the Company's and its subsidiaries' customers; the ability to maintain continuity of the process of introduction of new competitive products and services, w hile 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. F orw ard-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 rev isions to, any forward-looking statements in this presentation as a result of any change in our expectations or any change in ev ents, conditions or circumstances on w hich these forward-looking statements are based. Past performance should not be taken as an indication or guarantee of future results, and no representation or w arranty, express or implied, is made regarding such future performance. 39