investor overview - ace analyser meet/126881_20100331.pdf2010/03/31 · 13 years exp. in equities...
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INVESTOR OVERVIEW
www.ftindia.comMarch 2010- Annual Issue
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Market for MassesCreate a market for masses to build unprecedented shareholder value through a non-linear business model that
will transform economies, empower the common man and change lives.
Organized MarketsBuild next-generation, tech-centric, regulated markets that are more affordable, accessible to propagate the
benefits of ‘price transparency’, ‘efficient transaction’, ‘risk hedging’ and ‘structured finance’ to the masses –
helping to unlock value from the middle and bottom of the pyramid.
Largest Exchange NetworkCreate and operate the largest exchange network connecting deep, vibrant and liquid financial markets in the
fast-growing economies of Africa, Middle East, Central Asia, India, China and other Asian countries.
VISION
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BUSINESS OVERVIEW
LEADERSHIP TEAM
FINANCIAL OVERVIEW
GLOBAL TRENDS
GROUP COMPANY OVERVIEW
CORPORATE GOVERNANCE
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CSO INITIATIVES
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INTERNATIONAL EXCHANGE ALLIANCES
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LATEST FINANCIAL RESULT
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CONTENTS
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BUSINESS OVERVIEW
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A Large exchange and ecosystem network of 10 exchanges and 6 ecosystem spanning Africa to Asia across multi asset including commodities, currencies, energy and equity
Only corporate house to set-up 5 international exchanges- Dubai - DGCX (Dubai Gold and Commodities Exchange)- Singapore - SMX (Singapore Mercantile Exchange)- Bahrain - BFX (Bahrain Financial Exchange)- Mauritius - GBOT (Global Board of Trade)- Botswana - Bourse Africa
Financial Ecosystem Infrastructure - including clearing corporation, collateral mgmt, risk mgmt, information vending, payment processing & Training / Education
30+ group leadership team of MD / CEO / Director with over 600 man years of experience in financial markets and technology
3600+ employees in FT Group with global presence
FTIL GROUP COMPANIES / BUSINESS
MCX (Multi Commodity Exchange)
MCX-SX (MCX Stock Exchange)
IEX (Indian Energy Exchange)
NSEL (National Spot Exchange)
Trading Licenses
RANKING
#1
#1
#1
#1
#1
MARKET SHARE
82%*
55%**
87%*
91%+*
80%*
CORPORATE OVERVIEW
*For FY 2009-10**For the quarter ended March 31, 2010
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Cash liquidity of Rs 1009.5 crore approx (standalone) including bank FDs and debt mutual funds as on Mar 31, 2010
Financial Highlights for FY 2009-10EPS – Rs 74.97 ROCE - 18%
Book Value – Rs 443.08 RONW - 22%
Dividend - 400%
Rs 100 invested on Mar 31, 2003 would be Rs 16,100 as on Mar 31, 2010
The financials depicted above are standalone numbers for FY 2009-10
CAGR over the period of five years across all financial metricsTotal Income : 63% (from Rs 34 cr to Rs 344 cr)
EBITDA : 72% (from Rs 14.4 cr to Rs 216 cr)
Net Profit : 80% (from Rs 9.9 cr to Rs 188 cr)
Diluted EPS : 101% (from Rs 2.3 to Rs 74.97)
Dividend : 82% (from Rs 0.4 to Rs 8)
The financials depicted above are standalone numbers excluding capital gain on shares (CAGR for FY 2005-10)
FINANCIAL OVERVIEW
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The Company, as part of its core business strategy promotes and invests in new ‘Exchange’, ‘Technology’ and ‘Ecosystem’ ventures that utilize its technological capabilities and domain expertise towards creating world class enterprises. The investment in each such venture is assessed for its risks and is limited to a pre-determined level and will generate returns after the venture starts ramping-up operations in 2 to 4 years time frame. The company, as part of its non-linear business model, will continue to unlock value by broadening the investor base of its ventures.
To ensure sufficient funding for such ‘Exchange’, ‘Technology’ and ‘Ecosystem’ ventures, the company will maintain a healthy cash surplus on a continuing basis.
BROAD INVESTMENT PHILOSOPHY
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PRODUCTS
EXCHANGES
ECOSYSTEMS
EXCHANGE
NETWORKS
MCX kicks off live operations with DOME as the trading platform
10,000+ ODIN™ licenses installed
MCX-SXClear starts operations
BFX announced in Bahrain
SMX announced in Singapore
MCX-SX commences operations
IEX starts operations
Bourse Africa announced in Africa
480,000+ ODIN™ licenses installed
Introduced the Country's first Derivatives trading platform
ODIN™ goes live on NSE
DGCX launched in Dubai
NBHC launched as warehousing support to MCX
GBOT announced in Mauritius
2002 2004 2004 2006 2006 20101995 2002
FT GROUP EVOLUTION
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BUSINESS OVERVIEW
Commodity
Stock Exchange
Multi-asset: Commodities & Derivatives
Forex Sport / Energy
Dubai
Singapore Mauritius
BotswanaBahrain
Transaction Processing
Clearing
Commodity Depository
Risk Management
Information Digital Broadcasting
Knowledge Training
Exchange Solutions
Brokerage Solutions
Massaging Solutions
FINANCIAL TECHNOLOGIES
Exchange Business Ecosystem Business
Technology Business
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ANNUITY BASED REVENUE MODEL
Capital Gains on Shares Technology Revenue Exchange Revenue Ecosystem Revenue Income / Dividend from Investments
GROUP REVENUE DRIVERS
SELF-FUELINGVIRTUOUS
GROWTH CYCLE
EXCHANGE BUSINESS TECHNOLOGY BUSINESSRevenue Drivers
Licensing FeesAMC FeesMessaging (STP) FeesConsultancy FeesCapital Gains on SharesInterest and Dividend Income from Investments
CustomersExchangesBrokerage HousesDPs, Funds, AMCs
Revenue DriversTransaction FeesMembership FeesContent DistributionInterest on Float
CustomersExchanges MembersBanks
ECOSYSTEM BUSINESSRevenue Drivers
Warehouse ReceiptFinancing RevenueStorage & Allied ServiceProcurement Revenue
CustomersBanksFarmers/TradersCentral GovernmentInstitutions
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BROKERAGE SOLUTIONSEXCHANGE SOLUTIONS
DOME, “Exchange platform of choice”, powering 8 exchanges including MCX, MCX-SX, NSEL, DGCX, BFX, GBOT, SMX, and Bourse AfricaDOME offers uptime of around 99.995 %DOME also offers high volume handling capacity – 10 mn orders per day
ODIN™, India’s leading trading solution with over 530,000 licenses as on Mar 2010Captures more than 80% market share in the electronic trading inIndia4 out of 5 top Internet trading platform are powered by our solutionsCaters solution to over 4,000 members across MCX, MCX-SX, BSE, NSE, NSEL
TECHNOLOGY BUSINESS
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OTHER DEVELOPMENTS - FTIL
Business Today ranking of India’s 500 Most Valuable Companies in 2009 ranked Financial Technologies at No. 1 position based on the growth in profits in last 10 years. The company registered a Compounded Annual Growth Rate of 156.4%, the highest in the category.
FINANCIAL TECHNOLOGIES RANKED AS NO 1 IN TERMS OF 10-YEAR PROFIT GROWTH
Setting history of sorts in international financial markets, FT Group announced its three greenfield international exchanges to go live in 2010. SMX will go live in August 2010, GBOT in September 2010 and BFX in October 2010
FINANCIAL TECHNOLOGIES ANNOUNCED - THREE OF ITS EXCHANGES TO GO LIVE IN 2010
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LEADERSHIP TEAM
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SHREEKANT JAVALGEKARDirector - FinanceFormerly India Advisor, NexGen Fin. Sol., SingaporeFormerly MD, Lazard India, Ex- Advisor, Lazard Birla Fund
PARAS AJMERADirector - Operations and HR13 years exp. in equities and derivatives market, domain knowledge of the cash and derivative market operations at NSE and BSE
V. HARIHARANDirector - StrategyMore than 28 years of IT experienceWorked with Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)
JIGNESH SHAHChairman and Group CEOInnovator of modern financial markets through PPP modelFounder of MCX - World’s 6th largest commodity futures exchange. Also DGCX, GBOT, IEX & SMX among others
DEWANG NERALLADirector - TechnologyFormerly Deputy Manager, Trading Technology Division, BSEExtensive training in exchange automation technologies with Tandem Corporation (USA)
SUNIL KHAIRNARHead - Corporate Affairs Founder, Indian Agribusiness Systems Pvt Ltd.Founder, Indian Society of Agribusiness ProfessionalsFounder Director, Rural Marketing Association of India
ARSHAD KHANDirector - Business Development - MENAA functional expert in the transaction processing domain Post Graduate Diploma in Business Administration
MANJAY SHAHDirector - Business DevelopmentResponsible for Marketing and Business Development in Retail & Institutional segments
MITEN MEHTADirector - Market Development & Communications Worked with two Fortune 500 companies in the USA
FT LEADERSHIP TEAM
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ANJANI SINHAMD & CEO, NSELFormer Executive Director Ahmedabad Stock ExchangeA chartered accountant, law graduate, MBA and master of Economics and Commerce
JOSEPH MASSEYMD & CEO, MCX-SXFormer MD of Interconnected Stock Exchange of IndiaOver 20 Years of experience with LIC RBI, SHCIL & Vadodara Stock Exchange
LAMON RUTTENMD and CEO, MCXPreviously served as the Chief Finance, UNCTADMember of the World Bank’s International Task Force for Commodity Risk Management
U. VENKATARAMANCEO, MCX-SXFormer Head of Treasury at IDBI BankCertified Associate of Indian Institute of Banking and Finance
FRAMROZE POCHARADirector, SMXFormer Vice President - Operations, NSEKey role in the transition from physical to electronic settlement at NSE
THOMAS MCMAHONCEO, SMXOver 25 years of Industry experience in Derivatives & Commodities across Asia & USA. Former head of HongKong Mercantile Exchange (HKMEX) Former Director of NYMEX Asia.
CHRIS GOROMONZIFounding Executive Director, Bourse AfricaEstablished the Venture Capital Company of Zimbabwe (VCCZ)Co-Founder of Trust Merchant Bank, Zimbabwe
LATIKA S. KUNDUHead-Market Operations, MCX Stock ExchangeFormer Head, Equities Compliance, Lehman BrothersOver 15 years of experience in the Capital Markets
JOSEPH BOSCODMD & COO, GBOTFormer MD & CEO of OTCEILed the Membership, Listings, Inspection and Corporate communications departments at NSEEstablished the legal and compliance Dept. at ICICI securities
NICK BISHOPCOO, BFXVast experience in handling exchange operations and trading technologiesAssociated with reputed exchanges such as LIFFE, TFE and CBOT
FT GROUP LEADERSHIP TEAM
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TAPAS DASCOO, MCX-SX CCL Over 22 years of experience in areas of Banking and Capital Market industryPlayed a key role in setting up of the Regional Clearing House of NSE
CRAIG HEWETTCBO, BFXRich commercial and exchange experience in business expansion activitiesFormer Deputy Commercial Director, LME
P. R. RAMESHChief Compliance & Legal Officer, BFXFormer SEBI Board Member on Stock Exchanges and Self-Regulatory BodiesFormer Chief, Compliance and Risk Management, SBI Capital Markets Ltd.
JAYANT DEOMD & CEO, IEXFounding executive member of South Asian Federation of ExchangesChairman of Energy sub-committee of Maharashtra Chamber of Commerce & Industries and Agriculture
GANESH RAOCEO, IBS ForexOver 25 years of experience in the banking industry mostly in the area of foreign exchange tradingWorked with SBI and Bank of America as chief trader in FOREX
Dr. BANDI RAM PRASADPresident, FTKMC25 years of professional experience banking and securities marketsEx-Chief Economist - Indian Banks’ AssociationEx-Chief Knowledge Officer - BSE
ANIL CHOUDHARYMD & CEO, NBHCMore than 23 years experience in Banking and Business ManagementNominated by CII on its National Council on Agriculture
FT GROUP LEADERSHIP TEAM (Contd…)
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NARAYANAN VAGHUL Chairman - Independent Advisory Board Chairman ICICI BankFormer Chairman and Managing Director of Bank of India
P. G KAKODKARBoard of Director, FT GroupAdvisor to Societe Generale, IndiaFormer Chairman of SBI
KIRAN KARNIKMember - Advisory Board, FTILFormer President of NASSCOMFormer Senior Member of ISRO
G. N. BAJPAIMember - Advisory Board, FTILFormer SEBI ChairmanFormer Chairman of LIC of India
RAVI K. SHETHDirector, Financial Technologies GroupManaging Director, Greatship (India) Ltd.Co-founder and former Vice-President, Godrej Foods Ltd.
C. SUBRAMANIAMFormer Promoter and Director, Worldwide Technologies Ltd. and Mani Management Consultants Pvt. Ltd. Former Senior Vice-President, DSP Financial Consultants Ltd.
CHANDRAKANT KAMDARDirector, Financial Technologies GroupFormer Vice-President, Vadodara Stock ExchangeChartered Arbitrator, Fraud Investigation and Anti-Money Laundering specialist
RAMANATHAN DEVARAJANDirector, Financial Technologies GroupFormer Director, Spectrum Computer Services Pvt. Ltd.Member, Management Consultancy Division, N. M. Raiji & Co.
FT GROUP BOARD / ADVISORY BOARD
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ASHOK JHA, IAS (Retd.)Non-Executive Chairman, MCX Stock Exchange Ltd.Former President, Hyundai Motor India Ltd.Former Chairman, Foreign Investment Promotion Board (FIPB)
VENKAT CHARY, IASChairman, MCXEx-Chairman, FMCEx-Secretary to the Chief Minister of MaharashtraEx-Vice Chairman, Maharashtra State Road Transport Corporation
Dr. S. A. DAVEIndependent Director, MCX Stock ExchangeChairman, Centre for Monitoring Indian Economy Ltd. (CMIE)Former Chairman, Securities and Exchange Board of India (SEBI)
ASHA DASNominee Director of the FMC Over 37 years of leadership experience with the Indian Administrative ServiceRepresentation experience at the Executive Committee level with the UN
LAWRENCE LEIBOWITZMember - Advisory Board, MCXFormer Chairman, Nasdaq Quality of Markets CommitteeFormer Managing Director and Chief Operating Officer, UBS Americas Equities
S. VENUGOPALMember - Advisory Board, MCXFormer Assistant Professor of EconomicsAssisted in the resolution of stressed asset cases
CHARLES SEEGERMember - Advisory Board, MCXFormer Senior Vice-President and Counsel for Chicago Mercantile Exchange (CME)Chairman and Chief Executive Officer, Financial Markets International Inc.
S. S.THAKURDirector – MCX-SXFormer Controller of Foreign Exchange, RBIChairman of Central Depository Services (India) Ltd.
VEPA KAMESAMDirector – MCX-SXFormer Deputy Governor of RBIManaging Director of Institute of Insurance and Risk Management, Hyderabad
A. V. RAJWADEMember – Advisory Board, MCX-SXFormer Director, CRISILMember on important committees of RBIAuthor of widely read weekly column “World Money”
FT GROUP LEADERSHIP TEAM
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VIJAY IYENGAR Director - SMXFounder and Managing Director, AgrocorpChairman, Singapore Indian Chamber of Commerce and Industry (SICCI)
ANG SWEE TIANChairman, SMXFormer President of Singapore Exchange (SGX)Established SGX AsiaClearServed in Monetary Authority of Singapore
TAN SOO NANDirector - SMXFormer Chief Executive Officer, Temasek Capital Pte. Ltd. Chief Executive Officer, Singapore Pools Pte. Ltd.
MYRON SCHOLESMember - Advisory Board, SMXWinner of Nobel Memorial Prize in Economics, 1997, for the Black-Scholes pricing model
RANAPARTAB TACOURIDirector, GBOTAssumed key roles with Bank of Mauritius including that of Managing DirectorFormer Managing Director, Development Bank of Mauritius
MOHAMAD A. VAYIDDirector, GBOTFormer Chairman and Managing Director, British-American Tobacco Co. Ltd. (BAT) Founder Chairman and Managing Director, Strategic Management Consultants Ltd.
DAVID YEOWMember - Advisory Board, SMXMember of disciplinary committee, SGX-DTFormer Member, Debt Capital Market Working group, Singapore
S. K. TUTEJADirector, IEX Former consultant to the World Bank and UNIDOFormer Secretary to the GOI in the department of Food & Public Distribution
SULLIMAN ADAM MOOLLANDirector, GBOTFormer Chairman, Stock Exchange of Mauritius Ltd.Chairman, Bramer Asset Management Ltd.
R. V. SHAHIMember – Advisory, IEXFormer Secretary to the GOI, Ministry of PowerFormer Chairman and MD of BSES LtdChairman (Executive) of Energy Infratech Pvt Ltd
FT GROUP LEADERSHIP TEAM
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FINANCIAL OVERVIEW
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EBITDA (CAGR: 83%) Rs Million
FINANCIAL GROWTH (STANDALONE) excluding capital gain on shares
*Standalone numbers excluding long term capital gain on sharesFinancial Year: April – MarchCAGR is calculated for FY 05-10
TOTAL INCOME (CAGR: 63%) Rs Million
PAT (CAGR: 80%) Rs Million BASIC EPS (CAGR: 78%) Rs /share
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*Standalone numbers including long term capital gain on sharesFinancial Year : April – MarchCAGR is calculated for FY 05-10
TOTAL INCOME (CAGR: 81%) Rs Million EBITDA (CAGR: 99%) Rs Million
PAT (CAGR: 103%) Rs Million BASIC EPS (CAGR: 101%) Rs /share
FINANCIAL GROWTH (STANDALONE) including capital gain on shares
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TOTAL INCOME (CAGR: 60%) Rs Million EBITDA (CAGR: 38%) Rs Million
PAT (CAGR: 48%) Rs Million BASIC EPS (CAGR: 45%) Rs /share
FINANCIAL GROWTH (CONSOLIDATED) including capital gain on shares
*Consolidated numbers including long term capital gain on sharesFinancial Year : April – MarchCAGR is calculated for FY 05-10
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INCOME STATEMENT
OPERATING REVENUES
TOTAL INCOME
PROFIT FROM OPERATIONS
PBT
PAT
GROWTH OVER TWO YEARS
(in Rs. million)
FY 09-10
3,330
3,814
1,678
2,104
1,880
FY 08-09
3,564
4,350
1,868
2,581
2,065
FY 07-08
1,376
2,311
573
1,251
969
142%
65%
193%
68%
94%
FINANCIAL HIGHLIGHTS – OVER TWO YEARS(STANDALONE)
Financial Year: April – MarchFinancial figures are Standalone numbers excluding capital gain on shares
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SUMMARIZED BALANCE SHEET (STANDALONE)
*Foreign Currency Monetary Item Translation Difference Account
STRONG BALANCE SHEETNet worth of Rs 20,524 million as on Mar 31, 2010
Company has cash and bank balances of Rs 2,090.9 million and mutual funds of Rs 8,003.7 million (aggregated to Rs 10,094.6 million) as on Dec 31, 2009
Zero Coupon Convertible Bonds (ZCCB) of Rs 4,085 million (USD 90.5 million) as on Mar 31, 2010
(in Rs. million)
AS ON MAR 31, 09
APPLICATION OF FUNDS
Fixed Assets
Investments
Deferred Tax Asset
FCMITDA*
Current Assets, Loans & Advances
Less: Current Liabilities & Provisions
Net Current Assets
TOTAL
2,841
14,445
-
353
6,439
1,803
4,636
22,275
AS ON MAR 31, 10PARTICULARS
AS ON MAR 31, 09
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital
Reserves & Surplus
Loan Funds
Unsecured Loan
Zero Coupon Convertible Bonds
Deferred tax liability (Net)
FCMITDA*
TOTAL
92
17,405
4,611
167
22,275
AS ON MAR 31, 10PARTICULARS
92
20,432
4,085
88
52
24,749
2,739
20,019
-
-
4,356
2,365
1,991
24,749
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SHAREHOLDING HIGHLIGHTS as on Mar 31, 2010
*As on March 31,2010, Rounded **Exchange Rate as on Mar 31, 2010, US$ 1: 44.90 Rs. (Source: RBI reference rates)
PROMOTERS HAVE NOT PLEDGED ANY OF THEIR SHARES
FINANTECHFINTECH
Code: NSEBSE
Bloomberg / Reuters
No. of Shares Outstanding (In mn)
Closing Price*(In Rs / share)
Market Capitalization*(US$ bn)
52 week high / low (In Rs / share)
52 week high / low(In Rs / share)
FTECH:IN / FITE.BO
46.07
1569.75 (BSE)
1.61**
1721.95 / 630.00 (BSE)
1723.00 / 625.00 (NSE)
MAJOR INSTITUTIONAL SHAREHOLDERS
Passport Capital LLC A/C
Reliance Mutual Fund
Acacia Partners, LP
FID Funds Mauritius Limited
Deutsche Securities Mauritius Limited
STOCK INFORMATIONSHAREHOLDING STRUCTURE*
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GLOBAL TRENDS
OTC contracts do not have Mark To Mark value adjustments
OTC do not have central clearing house guarantee
ETC provides fungibility, higher liquidity and no counter party risks
OTC lack regulatory control and transparency -
OTC MARKETS TO REGULATED MARKETS
New World Economic Order - globalization has led to integration of economies. Markets need to be connected in flat world!
Cross-listing and clearing of products
Margin credit across exchanges and carry-forward of positions
Hedging and leveraging across time zones
Economies of scale across operations and network effect on liquidity
STANDALONE EXCHANGES TO EXCHANGE NETWORK
Exchanges offer fast, secure, transparent and regulated platform for transactions
NON-ELECTRONIC TO ELECTRONIC GLOBAL TRADE TRANSACTIONS
ROLE OF EMERGING ECONOMIES FROM PRICE TAKER TO PRICE SETTER / INFLUENCER
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ROAD AHEAD
Create exchanges in emerging markets in Africa, Middle East and Asia Pacific region to connect some of the fastest growing economies
New asset classes likeInterest Rate DerivativesSME Equity and F&OBonds and other products and asset classes
Build a robust eco-system to support new marketsClearingDepositoriesASP services - e.g. Back office
Provide the best of transaction and risk management technology to match the breadth and depth of the market growth providing highest integrity and scalability
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GROUP COMPANY OVERVIEW
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6th largest commodity futures exchange globally in terms of number of contracts traded on the exchange (Data Source: FIA & individual exchange website, Jan – Jun 2009)
1st in silver** 2nd in gold, copper and natural gas**3rd in crude oil**
Total value traded during FY 2010 – Rs 6,393,302 crore
Average Daily turnover of Rs 20,962 crore has been recorded for FY 2010 (~40% increase Y-o-Y)
Highest turnover of Rs 51,627 crore was recorded on Nov 27, 2009
Established 117,124 terminals (including CTCL and IBT terminals)and a membership base of 2,070 as on Mar 31, 2010
Launched Exchange of Futures for Physicals (EFP) for the 1st time in India
International Alliances - NYMEX, CCX, LME, Euronext Liffe and others
Domestic Alliances - Bombay Bullion Association, Pulses Importers Association, Solvent Extractors Association of India, Bombay Metal Exchange and others
AVERAGE DAILY TURNOVER (Rs. Cr)HIGHLIGHTS
CORPORATE OVERVIEW & OPERATIONAL GROWTH - MCX
* For FY2009-10**Based on the number of futures contracts traded in Jan-Dec 2009 (Source: Exchange Websites)Note: Turnover figures are at Exchange level (single-sided)
MCX DOMESTIC MARKET SHARE*
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Note: BSE share negligible**On 26th Feb 2010* For Q4 FY 2009-10
India’s new national level Stock Exchange like BSE and NSE, recognized under Section 4 of Securities Control Regulation Act,Government of India
Leader in offering nationwide electronic platform to trade in Currency (FX) and poised to extend the same to Interest Rate Futures (IRF), Equities (Cash & F&O), Indices and ETF, Debt and Small Medium Enterprises products***
1st exchange to have website in 11 regional languages and provide currency futures rates through SMS
MCX-SX started currency futures trading in three new currency pairs EURO /INR, GBP / INR and JPY / INR, on Feb 1, 2010
Alliances with FIEO, CIO, FIMMDA and FEDAI
MCX-SX CLEARING CORPORATION LIMITED (MCX-SX CCL)3rd approved clearing house by SEBI and RBI
LAAA - highest credit quality rating by ICRA
Margins fixed as per CME (Chicago Mercantile Exchange) SPAN (Standardized Portfolio Analysis of Risk) margin system +1% ELM (Excess Loss Margin)
OPERATIONAL MATRIX
Approved No. of Members
Cities Participated Across India
Average Daily Turnover (Rs. Cr)
Highest Turnover (Rs. Cr)
Average Daily Volumes (Contracts)
Highest No. of Contracts Traded (lots)
657
498
16,582*
22,756**
3,472,275
4,771,129**
AS OF MARCH 2010
MARKET SHARE*
CORPORATE OVERVIEW & OPERATIONALGROWTH - MCX-SX
***Subject to regulatory approval
AVERAGE DAILY TURNOVER (Rs. Cr)HIGHLIGHTS
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India’s No. 1 power exchange with 87% market share*
Number of Members - 78**, Total Clients - 178**
Average Daily Volume for FY 10 – 17,165 MWh
The exchange has 29 state utilities, 150 captive power plants and over 75 direct consumers participating for better managing theirenergy portfolio
IEX represented INDIA in APEX conference in Boston, USA from 11-13th October’09. Mr. Jayant Deo, MD& CEO, IEX, delivered the presentation on Operating Markets in a Supply Deficit while Attracting New Business
Indian Energy Exchange (IEX) was awarded as Best E-Enabled Customer Platform, for developing a robust platform for energy trading, in 2nd India Power Awards 2009, by Council of Power Utilities & KW Conferences Pvt. Ltd.
Renewable Energy Certificate (REC) to be introduced for trading on exchange soon
IEX Day Ahead Market hit Century of participants on a single day on Jan 08, 2010
MARKET SHARE*HIGHLIGHTS
AVERAGE DAILY VOLUMES MWH#
CORPORATE OVERVIEW & OPERATIONALGROWTH - IEX
* For FY 2010**As on March 31, 2010# FY 10 volume includes Term ahead market (Since Sept 15 2009) & Day ahead market volume
Source: Based on volume traded in MWh during FY 2009-10; as provided in the monthly reports on short-term transactions of electricity by CERC
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AVERAGE DAILY TURNOVER (Rs. Mn)
NSEL commenced its operations on October 15, 2008 and is India’s No.1 spot exchange, has a market share of over 91% compared to other Spot exchanges based on the Volumes of FY 2009-10
It is operational in 22 commodities across 11 states in India with its most active contracts being castor seed, cotton seed wash oil, cotton, barley and maize
NSEL is a compulsory delivery based electronic spot market for commodities with an objective to enhance farmers’ price realization and reducing consumer paid price by reducing cost ofintermediation and improving marketing efficiency
Number of Members as on March 31, 2010 – 320
Number of TWS as on March 31, 2010 – 1800
NSEL is operational in 23 commodities with its most active contracts being castor seed, cotton seed wash oil, cotton, barley and maize
NSEL launched a unique investment product in the form of dematgold on its platform in March 2010
NSEL began spot delivery contracts for agri commodities such as soybean, chana, wheat, mustard and coriander seeds at Guna in Madhya Pradesh
Karnataka
Rajasthan
Gujarat
Delhi
Madhya Pradesh
Maharashtra
Andhra Pradesh
Tamilnadu
West Bengal
Bihar
Orissa
NSEL PRESENCE IN INDIAHIGHLIGHTS
CORPORATE OVERVIEW & OPERATIONAL GROWTH - NSEL
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Pan-Asian Global Commodity Derivatives Exchange based out of Singapore
SMX will act as a proxy to the Asian economies like China, India (closed economies), Japan, Australia, Malaysia, Thailand, Indonesia, Vietnam (mostly inward)
Facilitate transparent price discovery and benchmarking in Asian time zone by being a center for secure clearing, settlement, risk warehousing and management
Member of Futures Industry Association (FIA), Swiss Futures and Options Association (SFOA), Associations of Futures Markets (AFM), Futures and Options Association (FOA)
Received in-principle regulatory clearance from the Monetary Authority of Singapore (MAS), the central bank of Singapore and regulator for its financial markets, to operate the first Pan-Asian multi-product commodity derivatives exchange
The exchange is set to go live in August 2010
(www.dgcx.ae)
(www.smx.com.sg)
One of the leading international commodities and currencies derivatives marketplace in Dubai that bridges the time zones between Europe and the Far East set up in a free trade zone with a 50-year tax holiday
It currently trades in U.S. Dollar-denominated futures contracts in gold, silver, crude oil, steel and fuel oil as well as currency futures contracts. DGCX also trades option contracts in gold futures.
At present, DGCX offers its members and their clients trade facilities in six forward months for gold futures, four forward months for silver futures and four forward months for futures in U.S. Dollars to Pounds Sterling, Euro and Japanese Yen, and six forward months for fuel oil futures
DGCX provides trade guarantee through its clearing corporation, Dubai Commodities Clearing Corporation (“DCCC”), which is a wholly-owned subsidiary of DGCX
DGCX achieved record annual volumes in 2009
- Volumes reached 1.5 million contracts (31.6% growth Y-o-Y) valued at US$ 79 billion (37% growth Y-o-Y) in CY 2009
- Currency and crude oil were the key drivers for the rise in the volumes - currency volumes increased by 132% while crude oil futures volumes rose by 140% on Y-o-Y basis
DGCX recorded a 133% rise in volume in the first quarter of 2010, with 495,059 futures contracts traded, valued at US $29.6 billion
FT GROUP - INTERNATIONAL EXCHANGE BUSINESS
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GBOT is the 1st Multi Asset International Derivatives Exchange offering entire basket of Commodities
Strategically located at the crossroads of Europe, Africa and Asia
GBOT is licensed by the Financial Services Commission (FSC), the Regulator for non bank financial services sector in Mauritius
The commodities available for trading in the first phase are: - Precious Metals: Gold, Silver and Platinum - Energy: Crude and ATF- Base Metals: Aluminum, Copper, Nickel and Zinc
The exchange is set to go live in September 2010
(www.gbot.mu)
The Middle East region’s first multi asset class, multi-access internationally accessible exchange
Will offer conventional and sharia compliant financial instruments
Using the BFX, market participants can raise capital, manage risk and invest with a variety of financial instruments
Regulated by the Central Bank of Bahrain (CBB)
The BFX will offer its members full end-to-end trading on the following asset classes:- Cash instruments - Derivatives
The exchange is set to go live in October 2010
1st pan-African spot and derivatives multi-asset exchange
The first central counterparty clearing house in Africa to offer depository services for warehouse receipts amongst other
Regulated under the framework of the Non-bank Financial Institutions Regulatory Authority (NBFIRA)
Bourse Africa will offer its members full end-to-end trading on the following asset classes:- Agricultural Commodities - Precious Metals and Base Metals- Energy Products - Minerals
((www.bfx.bh)
(www.bourseafrica.com)
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Depository business for facilitating structured credit (trade finance) against commodities from banks
Offers collateral management services to leading public and private sector banks
NBHC associated banks provide approximately over 60% of agriculture credit
“Category F” membership with Grain and Feed Trade Association (GAFTA)
Only Indian Warehousing and Commodity Management solution entity with a ISO 22000:2005 certification
Products & ServicesWarehousing and Commodity ManagementCommodity ProcurementCollateral ManagementTrade Intelligence and Support
Total employee strength of 1000+
Network of 25 offices across India
During FY 2010 NBHC Initiated container fumigation services forexport-bound destination such as Australia, appointed as nation-wide CCPM providers to large retail-houses
Presence 19 States
Sales & admin offices 73+
Number of Corporate Clients 30
Warehousing Storage capacity 2.01 million MT
Storage Space 13.73 million sq ft
Storage facilities
Quality Assurance & Pest ManagementFunctional QA Laboratories 31
Number of Commodities tested 130+
Number of Certificates Issued (Cumulative) 90,000+
Collateral Management (CM)No. of Banks associated with 33
Number of commodities funded 125+
CM Cumulative Funding facilitated Over Rs. 12,944 cr
Geographical spread 800+ locations
NBHC OPERATIONAL UPDATESHIGHLIGHTS
CORPORATE OVERVIEW & OPERATIONAL GROWTH - NBHC
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atom was incorporated in October 2005 and provides technology aimed at mobile phone and wireless device users
atom has created multiple products and services for mobile payment, mobile banking, Interactive Voice Response (IVR) based payments and mobile based service distribution network. The transactions are routed through banks’ payment gateways using phones
Company has the following lines of businesses:1. Payment Processing2. Technology solutions and services3. Financial inclusion services
Voice payments have garnered a larger market share due to fastercustomer adaptability & solutions that are agnostic to handset
atom has already entered into tie-ups with 120+ merchants, 10+ banks and 3 telecom companies in India
Key customers include SBI, NSEL, Muthoot Fincorp. Ltd. and have entered into negotiations with HDFC Standard Life
Implemented RSBY (Rashtriya Swastya Bima Yojana) projects in three urban districts of Kerala, Sindhudurg in Maharashtra, work in Nanded going on
atom IVR TRANSACTION VALUES (Rs. cr)HIGHLIGHTS
atom IVR TRANSACTION VOLUMES (in millions)
CORPORATE OVERVIEW & OPERATIONAL GROWTH - atom
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To organize and deliver real-time market data in an intelligent, user-friendly format that supports quality decision making
Launch of TickerPlant’s own chart for technical analysis
Expansion of the News desk team
Key clientele: Axis Bank, IDBI, DCB, Times of India, GE Shipping, Thomas Cook & TATA communications, Yahoo, Reliance Capital
Knowledge initiative of the Financial Technologies Group, focused on providing high quality domain consulting services
Targeting Banking and Financial Services Industry (BFSI)
Cover areas like financial risk management, risk analytics, quantitative techniques and data warehousing for risk management
Its technology platform for Risk Based Supervision (RBS) has been successfully launched during the year by a regulator abroad
Also been retained by an Indian regulator to develop quantitative models for its internal use
(www.riskraft.com)
(www.tickerplantindia.com)
Knowledge centre led by a team of researchers, analysts, and faculty with expertise in their domain
Consultancy and Advisory Services in commodities and financial markets
FTKMC has franchisee at 10 places as well as tie up with APTECH in 11 cities(www.ftkmc.com)
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CORPORATE GOVERNANCE
CSO INITIATIVES
INTERNATIONAL EXCHANGE ALLIANCES
v
v
LATEST FINANCIAL RESULT
v
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CG Policy encompasses - transparency, accountability, trusteeship, ethical corporate citizenship and management responsibilities, as well as Insider Trading Dealing Code to comply with the Insider Trading Regulations issued by SEBI.
Highly accomplished and acclaimed industry leaders with rich and diverse wealth of experience from managing corporates to exchange regulators, bureaucrats etc.
Adherence & compliance with Clause 49 of Listing Agreement
Committees consisting of world-class professionals representing an appropriate and diverse mix of skills and experience
Globally recognized leaders from technology and financial market space
Financial Downloads - 5 year overview of both standalone and consolidated business, quarterly financials and annual report
CORPORATE GOVERNANCE
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Gramin Suvidha Kendra (GSK)GSK conferred with the NASSCOM Social Innovation Award 2010 and BusinessworldFICCI SEDF CSR award for 2009-10.
11 new GSK centers operationalised in 2009-10, GSK now has 22 centers covering over 2200+ villages and more than 7000 registered members as on 31st March 2010.
More than 250 Farmer training and awareness programs conducted in collaboration with various GSK partners, with 13,000+ farmers participating in various GSK villages
GSK tied up with PRATHAM books for Children Education and new agri input partner: JK seeds for agri input sale at GSK locations
MOU signed with Gulbarga Zilla Parishadfor initiating a new GSK center. The center is funded by Ministry of Panchayati Raj (MoPR) under the RBH project and will be operational by end of June.
GSK has tied up with TCS for the Adult literacy program at GSK centers, with TCS providing the software.
More than Rs 40,000/-contributed by 84 employee
monthly to five NGOs.
Participation in Mumbai Marathon 2010. Marathon runners visited to Helen Keller Institute for the Deaf and DeafBlind.
Introduced Green Exchange micro site. Total number of visitors as on
24th May is 1292. http://greenexchange.mcxindia.com
Visit to ECORECO – An educational visit for employee’s
children to the e-waste plant, ECORECO.
Launched campaign on financial savings drive in association with India Post. Forty nine employees open Postal RD account . SAVING WEEKSAVING WEEK
GROUP CSO-INTERNAL ENGAGEMENTEDUCATION
CSO INITIATIVES
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FINANCIALS FOR YEAR ENDED MAR 31, 2010
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FINANCIALS FOR YEAR ENDED MAR 31, 2010
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Certain statements in this presentation contain forward-looking information about Financial Technologies (India) Ltd. and its group companies, including their business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or concern future financial performance (including revenues, earnings or growth rates), possible future plans and action of the company. Forward-looking statements are based on current expectations and understanding about future events.
They are inherently subject to, risks, uncertainties, and assumptions, etc about the Company, economic factors and the industry in general. The Company’s actual performance and events could materially differ from those expressed or implied by forward-looking statements made by the company due to, but not limited to, important factors such as general economic, political and market factors in India and internationally, competition, technological change, and changes in the government regulations.
SAFE HARBOR STATEMENT
Shreekant JavalgekarDirector - FinanceT: +91-2267152000M: +91 98211 [email protected]
INVESTOR RELATIONS CONTACTS:
Miten MehtaDirector - Global Market Development & CommunicationsFinancial Technologies GroupUS: +1 914 613 3006 India: +91 993 026 [email protected]