latileta qoro chief executive officer presentation - nadi chamber of commerce & industry...

Latileta QoroChief Executive Officer

INVESTING the

SMART WAY

Presentation - Nadi Chamber of Commerce & Industry Business Forum

25th October,2015.

Disclaimer

The information provided in this presentation is for general purposes only and is not intended to provide investing, tax, business, financial or legal advice to any individual or entity. This information has been prepared by the South Pacific Stock Exchange and is provided in good faith and is derived from sources believed to be accurate and reliable at the time of presentation. Financial, legal and other expert advice from competent professionals should be sought.

Outline

SPSE – What do we do?

Market Players – Who are they?

Investors:

• Investment Options

• Current Market Returns

Issuers

• Listing Requirements

4

SPSE - Overview

17 listed companies• 18 listed

securities

• 18,778 resident investors

• 573 non-resident.

4 securities boards• Main Board

• Restricted Board

• Fixed Interest Securities Board

• BondsSPSE

• Regulate – investors/issuers

• Develop

• 7 Staff

• Electronic Trading

• Central ShareRegistry Ltd

• Funded by various Fees and Government grant

• 8 member Board

• Licensed & Regulated by RBF

Clients – Investors and Issuers

5

Market Players

10 Investment Advisory

Firms/Individuals

INVESTORS (Savers)

6

What does Fiji’s Stock Market Offer?

Investment Benefits:• Tax-free dividends for residents & Non-residents• No CGT on gains made• Supplements retirement income (superannuation)• Good hedge against inflation• Tradability - a ready market available• Expert advice available from licensed stockbrokers• Regulated – SPSE & RBF

7

INVESTMENT OPTIONS Shares & Convertible Notes

(i) Yield/Income Securities (ii) Growth Securities

Investors – Options & Benefits?

8

Market ReturnsAverage Total Return (TAX FREE) – 10.5% (6.4% capital growth, 4.1% dividend)

Inflation: 1.5% Average Fixed Income Rate: 1-3.5% Viti Bonds: 4-5%

SecuritySecurity Prices

Capital Growth (%)

Income Yield (%)

Total Market Return (%)Sep-15 Dec-14

APP 0.90 0.70 28.6% 4.4% 33.0%ATH 1.08 0.97 11.3% 8.3% 19.7%CFM 4.13 4.10 0.7% 3.1% 3.9%FFF 0.79 0.79 0.0% 0.0% 0.0%FIL 0.72 0.63 14.3% 5.6% 19.8%

FMF 0.68 0.63 7.9% 1.8% 9.7%FTV 2.40 2.30 4.3% 0.0% 4.3%KGF 0.41 0.30 36.7% 0.0% 36.7%PBF 11.05 10.01 10.4% 0.5% 10.8%PBP 1.00 1.00 0.0% 3.0% 3.0%PGI 1.00 2.00 -50.0% 6.0% -44.0%RBG 3.03 2.83 7.1% 4.6% 11.7%RCF 3.55 2.90 22.4% 7.0% 29.5%TTS 3.05 3.05 0.0% 3.3% 3.3%VBH 3.30 3.16 4.4% 4.2% 8.7%FHL 4.05 3.50 15.7% 5.4% 21.1%BCN 7.12 7.08 0.6% 9.2% 9.8%FFFN 1.02 1.02 0.0% 7.4% 7.4%

AVERAGE 6.4% 4.1% 10.5%

ISSUERS/COMPANIES

9

What does Fiji’s Stock Market Offer?

10

What can companies gain?

Capital Raising Platform

Exit Strategy

Corporate Discipline (Reporting, Governance)Tax Savings/Incentives

Elevate Profile

11

More on Incentives…

Tax

10% Corporate

tax

CGT Exemption

- Restructure

No Dividend

WHT - non-resident

Tax free Dividend – Resident

150% deduction

12

FREQUENT ASKED QUESTIONS

Why no listing?

What can you list?

Outlook?

• Incentives - Application v. Implementation• S11 of ITA - RB Patel Case

• Cash is ‘cheap’

• Parent;• Subsidiary; or• Set-up separate company

• STRONG BUY preference ;• Further Capital Gain

expected.

The Immediate Future

13

RebrandingCloud-based Shareholder Registry

Corporate Investor Education Sessions (FoC)

National Listing Forum

1 Listing

Regional Expansion (Dual Listing etc)

VINAKA VAKALEVU!

14

Where can you obtain further Information?

15

• Contact BrokersKontiki Stockbroking Ltd (KSB)

Tel No : 3307 284 Email: broking@kontiki.com.fj FijiStock Brokers Ltd (FSB)

Tel No : 3304 675 Email: mail@fijistockbrokers.com.fjFHL Stockbrokers Ltd (FHS)

Tel No : 3307 025 Email: fhls@fijianholdings.com.fj

• SPSE website: www.spse.com.fjTel No : 3304 130Email: info@spse.com.fj

16

MAJOR REQUIREMENTS

Public Company

>$1m Market Cap

3 Years Operations

Audited FS - recent 3 years

20% Public Shareholding

AoA

Fit & Proper Board

Substantially same

Management

Prospectus

17

Sectoral Representations

4.45%

0.54%

50.31%

9.23%26.32%

5.06%

2.22%

1.86%

Market Capitalisation by Sector

Investment Insurance

Telecommunications/Media Retail

Manufacturer & Wholesalers Automotive

Banking Forestry