2017 INVESTORS’ FORUM
Presentation to Investors
Bola Adeeko
(Interim MD/CEO)
Central Securities Clearing System (CSCS) Plc
Classification: RESTRICTED
May 2017
Outline
Overview
Financials
Achievements
Projects
Overview
VISION
To be the globally
respected and leading
Central Securities
Depository in Africa
MISSION
We create value by
providing Securities
Depository, Clearing,
Settlement and other
services driven by
innovative technology
and highly skilled
workforce
VALUES
Security
Efficiency
Confidentiality
Uprightness
Resourcefulness
Excellence
S.E.C.U.R.E
3
Strategic Drivers
(2016 – 2017)
•
•
•
Annual PAT Growth Rate of 10%
Annual increase in contribution of Sales & Business Development to
PBT of 5% points over the next two years
Deepen and diversify products, services to improve revenue portfolio
• Deploy CSD platform & achieve 100% connectivity with core
stakeholders with 99.75% uptime
• Maintain 100% Data security (CIA Triad)
• Maintain Operational Efficiency of 24 hours Turnaround Time &
0.01% Error rate
• Achieve Customer & Stakeholder Satisfaction Index of 80%
• Enhance Technical Proficiency & Expertise of Employees by 20% - YoY
• Fully Comply with CPMI-IOSCO Principles
•
•
•
Interoperability within WACMIC and other African countries
Collaborate with stakeholders to establish CCP
Take Equity Stakes in other CSDs in west Africa
4
Our Services, Clients & Participants





Depository & Sub-registry services
Clearing & Settlement (Exchanges &
OTC)
Assignment of Symbols & Codes: ISIN,
CFI & FISN codes
Issuance of CHN & LEI
Collateral Management (pledges)
Dealing Members
Shares Registrars





Special Custodial services
Online services for real time access to
information
X-alert system for notification
SWIFT connectivity
Electronic document management
solution (EDMS)
Custodians Settlement Banks
5
Special Members
Financials
Market Snapshot
(NSE & NASD OTC Markets)
0.00
0.12
1.90
0.00
106.54
Transaction Value
Billion NGN
Billion Units
Transaction volume
0.80
0.08
92.86
50.92
1,338.60
0
108.47
89.18
2.32
953.43
1,043.64
95.83
4.68
658.22
577.10
2012
2013
NSE Market
2014
2015
2012
2016
2013
NSE Market
NASD OTC Market
Total Volume of securities settled stood at 96.63
billion units, a slight increase of 1.98% over the
previous year
2014
2015
2016
NASD OTC Market
Total value of securities settled stood at N581.78
billion, a decline of 42.1% compared to previous year.
7
Financial Highlights
SUMMARY (2012 to 2016)
Total Revenue 2012
– 2016 (N’bn)
• Revenue grew by 19.37%
(Average: 3.9%/YR)
• Expense increased by 17.89%
(Average: 3.6%/YR)
• PAT grew by 38.33%
(Average: 7.7%/YR)
Total Expenses
2012 – 2016 (N’bn)
• Expense to Revenue ratio dropped
from 40.18% to 39.68%:
(Average: 34.79%/YR)
Profit After Tax
2012 – 2016 (N’bn)
8
Earnings & Dividend Per Share
1 SUMMARY (2012 to 2016)
2
92
• Earning Per Share (EPS) has an average annual
growth rate of 11.19%
• Dividend Per Share (DPS) has an average annual
growth rate of 11.61%.
• Shareholders’ Funds (equity) increased by 85.38%
• 2016 proposed Dividend of N1.05 billion (21k
per share) to be approved at the AGM
3
EARNINGS PER SHARE (KOBO)
75
DIVIDEND PER SHARE (KOBO)
4
2013
2014
2015
2016
SHAREHOLDERS’ FUNDS 2012 – 2016 (N’BN)
26
22
26.08
23.82
21
20.58
17.06
15
2012
71
52
2012
27
89
14.07
2013
2014
2015
2016
9
2012
2013
2014
2015
2016
Business Processes & Growth
Enhancing the Product/Services Portfolio
CSCS Core
Services
Auxiliary
Services
New
Business Lines
Depository
Co – Location
Services
CCP
Work Area
Recovery
Cloud Virtualized
Server
Clearing &
Settlement
Data Center &
Disaster Recovery
Services
Collateral
Management
Cloud Rapid
Recovery
Cloud Data
Virtualization
Electronic
Document Storage
Insurance
Depository
Cloud Managed
Backup
Visual Desktop
Electronic
Document
Scanning
Market Data
Analytics
Workspace
Outsourcing
Business Process
Modelling (BPM)
Contact
Centre
Pension
Contribution Mgt.
system (PCMS)
Records Mgt. &
Warehousing
COLOUR KEY
Live products/services
Board approved
E-AGM
In view
11
Project Meridian Cont’d
INTRODUCTION
PROJECT PARTNERS
 Since Incorporation, CSCS has been using “Equator”
Software for its operational activities. In order to
modernize its operations and implement a single
integrated system for all its key business operations,
“Project Meridian” was commissioned.
 CSCS partnered with TATA Consultancy Services
(TCS), a world renowned IT servicing and business
solutions organization, to implement the TCS
BaNCS Market Infrastructure solution.
 To ensure efficient project delivery and quality
assurance, Accenture Nigeria was engaged as the
project consultant on the Project to support the
CSCS Project Management office.
 The scope of the project involves the acquisition,
customization and implementation of a platform that
will provide efficient Clearing, Settlement and
Depository services to the Nigerian Capital Market.
TCS BaNCS
BENEFITS
 Enhanced technology to improve operational
efficiency
 Support of a wider array of asset classes
 The flexibility to launch new products
 High Availability and Improved performance
 Increased productivity and process automation
 Enhanced monitoring & investigative capabilities
 The TCS BaNCS solution will provide CSCS with
Depository Services, Clearing & Settlement
functions, support for various DVP models,
integration with trading platforms, Risk &
Collateral Management and Securities Lending
and Borrowing.
12
Project Meridian
The implementation of Project Meridian commenced in January 2016. The Project Initiation, Planning,
Solution Analysis and Solution Alignment phases of the project were all completed in 2016. The Training,
Testing, Data Migration and Go-live phases are scheduled for completion in the 2nd quarter of 2017.
Project Phase
Status
End Date
Initiation & Planning Phase
Completed
Solution Analysis Phase
Completed
Solution Alignment Phase
Completed
Training Phase
In-progress
Q1 – Q2 2017
Testing Phase
In-progress
Q1 – Q2 2017
Data migration
In-progress
Q2 2017
Not Yet
Q2 2017
Go-live
13
Q1 – Q4 2016
CSD Risk Rating:
2016/17
Increase Efficiency in Depository,
Clearing & Settlement Services:
A-
 Achieve Thomas Murray “A” rating which indicates “Low
Overall Risk”
A
Thomas Murray Data Services
Upgrades the CSD Rating for
Nigeria's Central Securities
Clearing System (CSCS) from
A- to A, with a Positive
Outlook
http://ds.thomasmurray.com/sites/default/files/pressReleases/html/20160526_Thomas_Murray_Data_Services_Upgrades_the_CSD_Rating_for_Nigerias_Central_Securities_Clearing_System_%28CSCS%29_from
_A-_to_A_with_a_Positive_Outlook.htm
Press Announcement
Thursday 26th May, 2016
14
Business Processes & Growth
CPMI-IOSCO Principles
Information Security Management
System (ISMS)
Complied with all 18 applicable CPMI-IOSCO
Principles (Self assessment)
Deployment
of Security
Technologies
Continual
improvement
Continuous
stakeholders
awareness
Only CSCS & Strate of South Africa are the
two CSDs in AMEDA region that have
undertaken the Self Assessment
ISO/IEC
27001:2013
Surveillance Audit
passed
15
Membership
Strategic Alliances
16
New Businesses & Products
Pension Contribution Management System
(PCMS)
 CSCS is well positioned to replicate its successes in the Nigerian Capital Market to the Nigerian
Pension Industry.
 To successfully add value, CSCS proposes the implementation of an effective Pension Contribution
Management System (PCMS) that will support the goals and objectives of PENCOM as well as all
other stakeholders in the Pension Industry.
CSCS PCMS
•
Prompt remittance of pension contributions
•
Timely payment of retirement benefits
•
Seamless transfer of RSA account from resident PFA to preferred
PFA
•
Increased efficiency and straight through processing (STP)
•
Enhanced transparency & trust among participants
•
Easy reconciliation and investigation capabilities
•
Global view of RSA records at a glance by the regulator
•
Improved oversight functions by PenCom
•
Promote a sustainable Pension Industry
18
Benefits
The Nigerian
Pension
Industry
Pension Contribution Management System
(PCMS)
Employers
•
•
•
•
•
•
RSA Holders
Ability to upload and update employee information for
pension contribution
Payment link for remittance of monthly contribution to
PFC (PFA)
Access to compensation details of employees (RSA
holders) in the organization
Self-Service sign on
Customized and bespoke report generation.
Standardized schedule format
•
•
•
•
•
PFA/CPFA/PFC
•
•
•
•
•
Monitor the status of monthly pension contributions and
compensation details
Ability to view bio data and other related information
Monitor the status of RSA transfer requests, pension
payment requests, complaints etc.
Email and SMS Alerts
Payment link for voluntary contributions
PENCOM
Real time access to an individual’s RSA information: bio
data, monthly contributions and remittances by employers
Display of RSA and retirement payment requests
respectively
Flexible RSA account transfer window: Intra PFA transfer
within a PFC & Inter PFA between PFCs
Ability to generate reports as required
Customized and bespoke report generation.
•
•
•
19
PENCOM module – (unrestricted access to data bank
on pension contributions and all processes – Employers,
PFA/CPFA/PFC)
Transaction timestamps to facilitate regulatory
oversight
Standardised complaints, payments,
reconciliation/investigation and monitoring system
Outlook 2017
Project Meridian
• UAT*1 with NSE
has been
completed.
• UAT2 to be
completed by
end of Q2’17.
CCP
• Capital
raising.
• Finalization
of contracts
with technical
partners.
• preparation Q1’17 Results
• Positive
of
performance in
shareholders
Q1 with 16%
agreement
positive
for potential
variance over
investors.
budgeted
PAT*.
*CM – Collateral Management
*DVP – Delivery vs Payment
*ETP – Exchange Traded Products
*PAT – Profit After Tax
*PCMS - Pension Contribution Management System
*UAT- User Acceptance Testing
PCMS*
• Expand
customer base.
New CSD
Application
• New Go live
Collateral
Management
• Expand CM
services
Q1 ‘17
New Products
• Derivatives &
Exchange
Traded
Products (ETPs)
Direct cash
settlement
To be made
mandatory for
investors
effective 1st
Sep 2017.
Q4 ‘17
20
RTGS
Connection
• Achieve
DVP
Settlement
cycle
Reduction of
settlement
cycle to T + 2
2018
Thank you