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www.ftindia.com
INVESTOR OVERVIEW
www.ftindia.comJanuary 2010
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Market for Masses: Create 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 Markets: Build 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 Network: Create 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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Largest 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 exchangesDubai - 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
MCX (Multi Commodity Exchange)
MCX-SX (MCX Stock Exchange)
IEX (Indian Energy Exchange)
NSEL (National Spot Exchange)
Trading Licenses
83%
51%**
85%**
95%+**
80%
MARKET SHARE* RANKING FTIL GROUP COMPANIES / BUSINESS
#1
#1
#1
#1
#1
*For nine months ended Dec 31, 2009 **For Q3 FY 09-10
CORPORATE OVERVIEW
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Cash liquidity of Rs. 965 crore approx (standalone) including bank FDs and debt mutual funds as on Dec 31, 2009
CAGR over the period of five years across all financial metricsTotal Income - 96% (from Rs. 34 cr to Rs. 499.4 cr)
EBITDA - 107% (from Rs.14.4 cr to Rs. 265.5 cr)
Net Profit - 114% (from Rs. 9.9 cr to Rs. 206.5 cr)
Diluted EPS - 144% (from Rs. 2.3 to Rs. 80.33)
Dividend - 216% (from Rs. 0.4 to Rs.10)
The financials depicted above are standalone numbers excluding long term capital gain on shares (CAGR for FY2005-09)
Financial Highlights for FY 2008-09EPS - Rs. 80.33 ROCE - 21%Book Value - Rs. 381.33 RONW - 27% Dividend - 500%Rs. 100 invested on Mar 31, 2003 would be Rs. 15,662 as on Jan 31, 2010
The financials depicted above are standalone numbers forFY 2008-09 excluding long term capital gain on shares
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.
Despite continuing investments in these ventures, our cash surplus including investment in mutual funds (standalone) is at Rs. 9,651 million as on December 31, 2009
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
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ANNUITY BASED REVENUE MODEL
Revenue DriversTransaction FeesMembership FeesContent DistributionInterest on Float
CustomersExchanges MembersBanks
EXCHANGE BUSINESSRevenue Drivers
Licensing FeesAMC FeesMessaging (STP) FeesConsultancy FeesCapital Gains on SharesInterest and Dividend Income from Investments
CustomersExchangesBrokerage HousesDPs, Funds, AMCs
TECHNOLOGY BUSINESS
Revenue DriversWarehouse ReceiptFinancing RevenueStorage and Allied ServiceProcurement Revenue
CustomersBanksFarmers / TradersCentral GovernmentInstitutions
ECOSYSTEM BUSINESS
Technology Revenue Exchange Revenue Ecosystem Revenue Income / Dividend from Investments Capital Gains on Shares
GROUP REVENUE DRIVERS
SELF-FUELINGVIRTUOUS
GROWTH CYCLE
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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 Africa
DOME 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 480,000 licenses
Captures more than 80% market share in the electronic trading inIndia
4 out of 5 top Internet trading platform are powered by our solutions
Caters solution to over 4,000 members across MCX, MCX-SX, BSE, NSE, NSEL
TECHNOLOGY BUSINESS
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RECENT DEVELOPMENTS
Financial Technologies deploys enhanced versions of exchange technology at MCX Jan 15, 2010 FTIL announced that MCX has successfully migrated to the latest version of exchange technology - DOMETM and clearing and settlement solution - CnSTM. The new versions of DOMETM and CnSTM give traders a completely unique experience with introduction of globally accepted new functionalities and performance aspects.
Financial Technologies deploys MAIA’s Business Intelligence support software Dec 01, 2009FTIL deployed MAIA Intelligence’s 1KEY BI (business intelligence) software for MIS reporting and data analysis support. It deployed a host of support solutions with its unique un-matched IP centric technology platforms.
NMCE integrates FTIL’s ODINTM for its Front-end Trading Technology Dec 3, 2009NMCE launched its segment integrated on ODINTM - brokerage solution of FTIL. This integration comes within five months of the agreement signing between the two national organizations.
Financial Technologies ranked as No 1 in terms of 10-year profit growthBusiness 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.
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LEADERSHIP TEAM
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DEWANG NERALLADirector - TechnologyFormerly Deputy Manager, Trading Technology Division, BSEExtensive training in exchange automation technologies with Tandem Corporation (USA)
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
ARSHAD KHANDirector - Business Development - MENAA functional expert in the transaction processing domain Post Graduate Diploma in Business Administration
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
MANJAY SHAHDirector - Business DevelopmentResponsible for Marketing and Business Development in Retail & Institutional segments
V HARIHARANDirector - StrategyMore than 28 years of IT experienceWorked with Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)
MITEN MEHTADirector - Market Development & Communications Worked with two Fortune 500 companies in the USA
SHREEKANT JAVALGEKARDirector - FinanceFormerly India Advisor, NexGen Fin. Sol., SingaporeFormerly MD, Lazard India, Ex- Advisor, LazardBirla Fund
SUNIL KHAIRNARDirector - CSR & Corporate Affairs Founder, Indian Agribusiness Systems Pvt Ltd.Founder, Indian Society of Agribusiness ProfessionalsFounder Director, Rural Marketing Association of India
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 and 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.
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
CHRIS GOROMONZIFounding Executive Director, Bourse AfricaEstablished the Venture Capital Company of Zimbabwe (VCCZ)Co-Founder of Trust Merchant Bank, Zimbabwe
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
Dr. BANDI RAM PRASADPresident, FTKMC25 years of professional experience banking and securities marketsEx-Chief Economist - Indian Banks’ Association Ex-Chief Knowledge Officer - BSE
CRAIG HEWETTCBO, BFXRich commercial and exchange experience in business expansion activitiesFormer Deputy Commercial Director, LME
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
ANIL CHOUDHARYMD & CEO, NBHCMore than 23 years experience in Banking and Business ManagementNominated by CII on its National Council on Agriculture
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.
FT GROUP LEADERSHIP TEAM (Contd…)
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G. N. BAJPAIMember - Advisory Board, FTILFormer SEBI ChairmanFormer Chairman of LIC of India
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
RAVI K. SHETHDirector, Financial Technologies GroupManaging Director, Greatship (India) Ltd.Co-founder and former Vice-President, Godrej Foods Ltd.
CHANDRAKANT KAMDARDirector, Financial Technologies GroupFormer Vice-President, Vadodara Stock ExchangeChartered Arbitrator, Fraud Investigation and Anti-Money Laundering specialist
C. SUBRAMANIAMFormer Promoter and Director, Worldwide Technologies Ltd. and Mani Management Consultants Pvt. Ltd. Former Senior Vice-President, DSP Financial Consultants Ltd.
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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S. S.THAKURDirector – MCX-SXFormer Controller of Foreign Exchange, RBIChairman of Central Depository Services (India) Ltd.
A. V. RAJWADEMember – Advisory Board, MCX-SXFormer Director, CRISILMember on important committees of RBIAuthor of widely read weekly column “World Money”
VENKAT CHARY, IASChairman, MCXEx-Chairman, FMCEx-Secretary to the Chief Minister of MaharashtraEx-Vice Chairman, Maharashtra State Road Transport Corporation
ASHOK JHA, IAS (Retd.)Non-Executive Chairman, MCX Stock Exchange Ltd.Former President, Hyundai Motor India Ltd.Former Chairman, Foreign Investment Promotion Board (FIPB)
VEPA KAMESAMDirector – MCX-SXFormer Deputy Governor of RBIManaging Director of Institute of Insurance and Risk Management, Hyderabad
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.
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
Dr. S. A. DAVEIndependent Director, MCX Stock ExchangeChairman, Centre for Monitoring Indian Economy Ltd. (CMIE)Former Chairman, Securities and Exchange Board of India (SEBI)
FT GROUP BOARD / ADVISORY BOARD (Contd…)
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R. V. SHAHIMember – Advisory, IEXFormer Secretary to the GOI, Ministry of PowerFormer Chairman and MD of BSES LtdChairman (Executive) of Energy Infratech Pvt Ltd
S. K. TUTEJADirector, IEX Former consultant to the World Bank and UNIDOFormer Secretary to the GOI in the department of Food & Public Distribution
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
SULLIMAN ADAM MOOLLANDirector, GBOTFormer Chairman, Stock Exchange of Mauritius Ltd.Chairman, Bramer Asset Management Ltd.
DAVID YEOWMember - Advisory Board, SMXMember of disciplinary committee, SGX-DTFormer Member, Debt Capital Market Working group, Singapore
MOHAMAD A. VAYIDDirector, GBOTFormer Chairman and Managing Director, British-American Tobacco Co. Ltd. (BAT) Founder Chairman and Managing Director, Strategic Management Consultants Ltd.
ANG SWEE TIANChairman, SMXFormer President of Singapore Exchange (SGX)Established SGX AsiaClearServed in Monetary Authority of Singapore
VIJAY IYENGAR Director - SMXFounder and Managing Director, AgrocorpChairman, Singapore Indian Chamber of Commerce and Industry(SICCI)
FT GROUP BOARD / ADVISORY BOARD (Contd…)
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FINANCIAL OVERVIEW
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* Standalone Total Income excluding long term capital gain on sharesFinancial Year : April - MarchCAGR is calculated for FY 05-09
FINANCIAL GROWTH (STANDALONE)excluding capital gain on shares
TOTAL INCOME* (CAGR: 96%) Rs. Million EBITDA (CAGR: 107%) Rs. Million
PAT (CAGR: 114%) Rs. Million BASIC EPS (CAGR: 111%) Rs./share
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FINANCIAL GROWTH (STANDALONE)including capital gain on shares
TOTAL INCOME* (CAGR: 114%) Rs. Million EBITDA (CAGR: 139%) Rs. Million
PAT (CAGR: 147%) Rs. Million BASIC EPS (CAGR: 144%) Rs./share
* Standalone Total Income including long term capital gain on sharesFinancial Year : April - MarchCAGR is calculated for FY 05-09
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FINANCIAL HIGHLIGHTS (STANDALONE) - Annualexcluding capital gain on shares
PARTICULARS
TOTAL INCOME
EBITDA
EBITDA Margin
Y-o-Y %FY 08-09
PBT
PAT
PAT Margin
FY 07-08
Financial Year : April – MarchFinancial figures are Standalone numbers excluding capital gain on shares
4,994
2,655
2,065
2,581
53%
41%
2,311
1,384
970
1,252
60%
42%
101%
92%
113%
106%
(in Rs. mn)
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FINANCIAL HIGHLIGHTS (STANDALONE) - Q3 FY 10excluding capital gain on shares
Note: Above stated financials are standalone figures excluding capital gain on shares
DECLARES INTERIM DIVIDEND OF 100% ON THE FACE VALUE OF RS. 2/- PER SHAREDECLARES INTERIM DIVIDEND OF 100% ON THE FACE VALUE OF RS. 2/- PER SHARE
(in Rs. mn)
Financial Technologies’ operating
revenue increased by 53% to Rs.
1,053 million (Y-o-Y) for the quarter
ended Dec 31, 2009
Profit from operations has increased
by 192% to Rs. 616 million (Y-o-Y) for
the quarter ended Dec 31, 2009
Net profit after tax excluding capital
gain on shares increased by 43% to
Rs. 618 million (Y-o-Y) for the quarter
ended Dec 31, 2009
INCOME STATEMENT Q3 FY 10
TOTAL INCOME
PROFIT FROM OPERATIONS
PAT
Y-o-Y %
OPERATING REVENUES
PBT
Q3 FY 09
432
687
1,054
211
578
618
1,053
1,124
616
686
43%
53%
7%
192%
19%
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SUMMARIZED BALANCE SHEET (STANDALONE)
STRONG BALANCE SHEETNet worth of Rs. 20,123 million as on Dec 31, 2009
Company has cash and bank balances of Rs. 1,306 million and mutual funds of Rs. 8,345 million (aggregated to Rs. 9,651 million) as on Dec 31, 2009
Zero Coupon Convertible Bonds (ZCCB) of Rs. 4,225 million (USD 90.5 million) as on Dec 31, 2009
*Foreign Currency Monetary Item Translation Difference Account
(in Rs. mn)
APPLICATION OF FUNDS
Fixed Assets
Investments
Deferred Tax Asset
FCMITDA*
Current Assets, Loans & Advances
Less: Current Liabilities & Provisions
Net Current Assets
TOTAL
AS ON DEC 31, 09
AS ONMAR 31, 09
2,841
14,445
-
353
6,439
1,803
4,636
22,275
2,759
20,216
-
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3,863
2,418
1,445
24,455
AS ON DEC 31, 09
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital
Reserves & Surplus
Loan Funds
Unsecured Loan
Zero Coupon Convertible Bonds
Deferred tax liability (Net)
TOTAL
AS ON MAR 31, 09
4,225
107
20,031
92
24,455
4,611
167
17,405
92
22,275
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CASH AND CASH EQUIVALENTS (STANDALONE) as on Dec 31, 2009
PARTICULARS
MUTUAL FUNDS
FIXED DEPOSITS
CURRENT / EEFC ACCOUNT / CASH
TOTAL
AS ON DEC 31, 09
9,651
AS ONMAR 31, 09
11,617
8,345
1,096
210
7,210
3,849
558
(in Rs. mn)
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PROMOTERS HAVE NOT PLEDGED ANY OF THEIR SHARESPROMOTERS 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)
Passport Capital LLC A/C
Reliance Mutual Fund
Acacia Partners, LP
FID Funds Mauritius Limited
Deutsche Securities Mauritius Limited
MAJOR INSTITUTIONAL SHAREHOLDERS
FTECH:IN / FITE.BO
45.95
1527.05 (BSE)
1.51**
1721.95 / 415.25 (BSE)
1723.00 / 382.35 (NSE)
SHAREHOLDING HIGHLIGHTSas on Dec 31, 2009
*As on Jan 31,2010 **Exchange Rate as on Jan 31, 2010, US$ 1: 46.12 Rs. (Source: RBI reference rates)
SHAREHOLDING STRUCTURE STOCK INFORMATION
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OTC Markets to Regulated MarketsOTC 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
Standalone Exchanges to Exchange Network 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
Non-Electronic to Electronic Global Trade Transactions Exchanges offer fast, secure, transparent and regulated platform for transactions
Role of Emerging Economies from Price Taker to Price setter / Influencer
GLOBAL TRENDS
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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
ROAD AHEAD
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GROUP COMPANY OVERVIEW
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AVERAGE DAILY TURNOVER Rs. Billion HIGHLIGHTS
MCX DOMESTIC MARKET SHARE*
* Market share based on turnover for nine month ended Dec 31, 2009 (Source: FMC)
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 gold and silver** 2nd in copper and natural gas**3rd in crude oil**
Total value traded during 9M FY 10 -Rs. 4,585,750 crore
Average Daily turnover of Rs. 21,642 crore has been recorded for the month of Jan 2010
Highest turnover of Rs. 51,627 crore was recorded on Nov 27, 2009
Established 8,573 trade work stations (TWS), 96,268 TWS under CTCL and a membership base of 2,055 as on Dec 31, 2009
Launched Exchange of Futures for Physicals (EFP) for the 1st time in India
12+ International Alliances - NYMEX, CCX, LME, EuronextLiffe and others
18 Domestic Alliances - Bombay Bullion Association, Pulses Importers Association, Solvent Extractors Association of India, Bombay Metal Exchange and others
CORPORATE OVERVIEW & OPERATIONALGROWTH - MCX
**Based on the number of futures contracts traded in Jan-Dec 2009 (Source : Exchange Websites)Note: Turnover figures are at Exchange level (single-sided)
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CORPORATE OVERVIEW & OPERATIONALGROWTH - MCX-SX
***Subject to regulatory approval
QUARTERLY AVERAGE DAILY TURNOVER Rs. Crore MARKET SHARE*
HIGHLIGHTS AS OF DEC 2009
India’s new national level Stock Exchange like BSE and NSE, recognized under Section 4 of Securities Control Regulation Act, Government of IndiaLeader 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 SMSMCX-SX started currency futures trading in three new currency pairs EURO /INR, GBP / INR and JPY / INR, on Feb 1, 2010Alliances with FIEO, CIO, FIMMDA and FEDAI
MCX-SX CLEARING CORPORATION LIMITED (MCX-SX CCL)3rd approved clearing house by SEBI and RBILAAA - 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)
Note: BSE share negligible
* For Month of Jan 2010** On Jan 12, 2010
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)
647
491
14,617.24
17,568.40**
3,179,572
3,855,925**
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Strategies adopted in market- More penetration into physical market- Wide participation of smaller players like CPPs, generators (less
than 10 MW), Distribution Licensees- Keeping existing members intact through better services
IEX launched Term-ahead Market on 15th September’ 09 with following contracts:
- Intra Day Contract - Day Ahead Contingency - Daily Contract - Weekly Contract
** For the month of Jan 2010# Q3 FY10 volume include Term ahead market and Day ahead marketvolumeSource: www.powerexindia.com for PXI turnover
CORPORATE OVERVIEW & OPERATIONALGROWTH - IEX
AVERAGE DAILY VOLUMES (MWh) # HIGHLIGHTS
India’s No. 1 power exchange with 85% market share*
Number of Members - 70*, Total Clients - 144*
Average Daily Volume for Q3 FY 10 – 23,242 MWh
Prominent members added Tamil Nadu Electricity BoardHare Krishna Metallics Private Ltd.Natural Sugar & Allied Ind. Ltd.
Prominent clients addedUttar Pradesh Power Corporation Ltd.Jindal Steel Limited. Nava Bharat Ventures Ltd. M/s Lanco Kondapalli Power Pvt. Ltd
Renewable Energy Certificate (REC) to be introduced for trading on exchange soon
IEX Day Ahead Market hits Century of participants on a single day on Jan 08, 2010
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*Based on turnover for Q3 FY 10 of NSEL and NCDEX Spot** Partial ListSource: Exchange Websites
India’s No. 1 spot exchange with over 95%* market share
Number of Members as on Dec 31, 2009 - 299
Number of commodity traded as on Dec 31, 2009 - 22
Soy Bean Farmers’ Ex-Ganj Basoda and Ex-Vidisha contract launched for trading
HIGHLIGHTS
KarnatakaRajasthanGujaratDelhi
West BengalBiharOrissa
Madhya PradeshMaharashtraAndhra PradeshTamilnadu
NSEL PRESENCE IN INDIA
NAFED Cotton ContractGuar SeedLemon TurImported UradRed Areca nut RashiYellow Peas
Castor SeedMaizeChanaSugarPepperCotton Bales
Agri-Commodities**Bullion
Gold 1 Kg bar
Gold 100g bar
Silver 30 Kg bar
Intraday Gold 1 kg bar
Intraday Gold 100g bar
Intraday Silver 30 kg bar
Silver Granules 25 kg
Intraday Silver Granules 25 kg
Gold mini
Silver mini
COMMODITIES AVAILABLE FOR TRADING AS ON DEC 31, 2009
CORPORATE OVERVIEW & OPERATIONALGROWTH - NSEL
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First 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
FT GROUP - INTERNATIONAL EXCHANGE BUSINESS
1st Commodities Derivatives Exchange and the only international currency exchange in Middle East
1st international exchange in a free trade zone with a 50-year tax holiday
Offers commodities derivatives and currency trading and has a full fledged clearing corporation DCCC
Settlement guarantee provided by DCCC, a subsidiary 100% owned by DGCX
Volumes in CY 2009 reached 1.5 million contracts (31.6% growth Y-o-Y) valued at US $79 billion(37% growth Y-o-Y)
Total volume in January rose 300% year-on-year to 153,747 contracts; valued at US $9,187 millionInstitutional equity holding
DMCC - 51%Other Institutional Investors – 5%
Global AlliancesBursa Malaysia
FT Group - 44% (Incl MCX holding of 5%)
TOCOM
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Minerals
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)
The BFX will offer its members full end-to-end trading on the following asset classes:Agricultural Commodities Energy ProductsPrecious Metals and Base Metals
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
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 PlatinumBase Metals: Aluminium, Copper, Nickel and Zinc
Energy: Crude and ATF
FT GROUP - INTERNATIONAL EXCHANGE BUSINESS
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Presence 19 StatesSales & admin offices 85+Number of Corporate Clients 24
Warehousing Storage capacity 11.52 lakhs MTStorage Space 63.62 lakhs sq ftStorage facilities 388
Quality Assurance & Pest ManagementFunctional QA Laboratories 31Number of Commodities tested 125+Number of Certificates Issued (Cumulative) 182,000
Collateral Management (CM)No. of Banks associated with 33Number of commodities funded 125+ CM Cumulative Funding facilitated Over Rs. 11,200 crGeographical spread 800+ locations
CORPORATE OVERVIEW & OPERATIONAL GROWTH - NBHC
OPERATIONAL HIGHLIGHTS AS ON DEC 31, 2009 HIGHLIGHTS
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
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CORPORATE OVERVIEW & OPERATIONAL GROWTH - atom
atom IVR TRANSACTION VALUES ( Rs. cr) HIGHLIGHTS
atom IVR TRANSACTION VALUES (in ‘000)
New Products during Oct-Dec, 2009Acceptance of Axis Bank Debit Cards over atom IVR
Launch of SUGAM across 40 retailer outlets
Launch of CASHPOR front-end automation pilot over 4 branches in eastern UP
Launch of pilot with HDFC Standard Life Insurance for automation of their filed force
Tie-ups during Oct-Dec, 2009Muthoot Pappachen Group for front-end automation of their collection
Citibank, IDBI Bank, YES Bank, Karnataka Bank and HDFC Bank for Net Banking
Yatra & Spice Jet for IVR services
Book my Show (Movie ticketing) & IRCTC for mobile application and SUGAM
MakeMyTrip team for mobile phone-based travel booking
Future Generali to enable premium payments
Signed pact with RCom for payment transactions through mobile
Cancer Patients Aid Association (CPAA) for automated IVR technology and mobile based payments functionality
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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
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 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
FT GROUP - OTHER ECOSYSTEM BUSINESS
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CORPORATE GOVERNANCE
CSO INITIATIVES
v
INTERNATIONAL EXCHANGE ALLIANCES
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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CSO INITIATIVES
Gramin Suvidha Kendra (GSK)6 new GSK centers launched in the 3rd quarter. Center situated in Radhanpur, Patan District of Gujarat is in association with Cairn India Ltd.
GSK now has 18 centers covering over 1900 villages and more than 5000 registered members.
64 Farmer training and awareness programs conducted in collaboration with various GSK partners
Devgen Seeds and Ion Exchange Ltd. have joined the GSK platform for sale of agriinputs and rural water purifiers respectively.
EDUCATION COMMUNITY INVESTMENT
HIV-AIDS awareness week celebrated from 30th Nov to 5 Dec 2009. More than 100 support staff and women employees in 4 batches were imparted knowledge on HIV and AIDS.
FT group 3rd Blood Donation Drive conducted on 28th Oct-09. 401 bottles of blood collected from 10 offices of FT Group companies across the country.
SAHYOG-A MCX-Tata power initiativeSAHYOG is a joint initiative of MCX and Tata power, wherein MCX provides spot and future market rates to 25 selected villages of Maval and Mulshi taluka of Punedistrict. The rates are updated on a daily basis on Blackboard by 2 local coordinators. Tata power funds the project under its CSR activity.
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INTERNATIONAL EXCHANGE ALLIANCES
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FINANCIALS FOR QUARTER ENDED DEC 31, 2009
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FINANCIALS FOR QUARTER ENDED DEC 31, 2009
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SHREEKANT JAVALGEKARDirector - FinanceT: [email protected]
MAYURA KULKARNIAsst. Manager - Investor RelationsT: +91-22-67152000M: +91 99302 [email protected]
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.
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