Gielda Papierow Wartosciowych W Warszawie S.a. · GPW:GPW
Gielda Papierow Wartosciowych W Warszawie — Warsaw Stock Exchange Group — Investor Presentation (December 2023)
56 slides from Gielda Papierow Wartosciowych W Warszawie's investor presentation, December 2023
Slide 1: Warsaw Stock Exchange Group Investor Presentation
Warsaw Stock Exchange Group Investor Presentation December 2023
Slide 2: Agenda
Agenda About the GPW Group 3 Business activity in Q3 2023 9 Market highlights and opportunities 14 GPW Group financial results in Q3 2023 36 Appendices 43
Slide 3: Key highlights of GPW
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Key highlights of GPW Operator of Central and Eastern Europe’s Central and Eastern Europe IPO hub largest exchange Leading growth sectors include eCommerce, Gaming Shares turnover on the Main Market in
Slide 4: History of GPW and future progress
About the GPW Group Business activity Highlights and opportunities Financial results Appendices History of GPW and future progress #GPW2022 Strategy Decision to build GPW Aquis Exchange Trading Platform WATS aquisition Launch of GPW Tech Launch of NewConnect UTP trading and GPW derivatives market (G
Slide 5: Attractive investment opportunity among peers
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Attractive investment opportunity among peers Price to Earnings for 2023e EV to EBITDA for 2023e 60 50 50 40 40 30 30 22,8 20 20 13,4 10,5 7,8 10 10 0 0 Dividend yield 2024e1 Market multiplies 8% 7,0% pee
Slide 6: Experienced management board
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Experienced management board GPW management board Shares Marek DIETL, CEO Mr Dietl has spent almost 20 years in the consulting and venture capital industries. He collected experience as a non-executive bo
Slide 7: The objectives under the GPW Group ESG Strategy 2025
About the GPW Group Business activity Highlights and opportunities Financial results Appendices The objectives under the GPW Group ESG Strategy 2025... ESG – environmental, social, governance factors GPW Group supports GPW Group is a responsible GPW Group has established E transition to low-carbon e
Slide 8: ...were pursued in the previous quarter by means of:
About the GPW Group Business activity Highlights and opportunities Financial results Appendices ...were pursued in the previous quarter by means of: Implementing and operational activities of the Group in pursuit of the GPW Group ESG Strategy 2025: GPW Capital Group ✓ Monitoring of Scope 1 and Scope
Slide 9: GPW Group's sales revenue mix in Q3'23
About the GPW Group Business activity Highlights and opportunities Financial results Appendices GPW Group’s sales revenue mix in Q3’23 Listing 1 revenue Other AMX Derivatives 5.2% Financial Market Debt 3.0% Commodity Market 5.6% 48.6% instruments 4.1% Electricity 33.1% vs. 49.4% in Q3’22 3.3% vs. 33
Slide 10: Financial performance
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Financial performance Sales revenue Operating expenses Sales revenue PLN mn PLN mn PFSA Revenue up 19.9% YoY to PLN 106.1 mn in +10.5% +23.7% Q3’23. Revenue from the financial market up 13.4% YoY to PLN
Slide 11: Investor activity
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Investor activity Main Market EOB equity turnover value ETF turnover value PLN bn turnover velocity2 PLN mn 59.8 43.1 43.6 32.9 34.8 35.2 35.3 32.3 31.8 1,028.0 32.8 313.5 297.3 279.3 285.6 768.2 762.7 84
Slide 12: Derivatives turnover
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Derivatives turnover Derivatives turnover volume mn contracts 15.6 4.2 12.0 11.5 10.6 9.5 3.4 Total derivatives turnover volume in Q3’23: 3.3 3.9 Q4 8.2 8.0 8.2 3.1 2.2 7.6 3.1 mn contracts (-21.4% YoY,
Slide 13: Commodity market turnover
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Commodity market turnover Electricity and gas spot and forward turnover volume Electricity, TWh Natural Gas, TWh +1.1% +9.0% Electricity market 35.6 36.0 43.4 34.6 34.5 40.8 +4.4% Total electricity turn
Slide 14: Diversified business model – product portfolio
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 1 Diversified business model – product portfolio TRADING NEW POST- MARKET LISTING AMX BUSINESS TRADING DATA1 EQUITIES & LINES2 DERIVATIVES BONDS MEMBERSHIP COMMODITIES OTHER Listing of Exchange Equities F
Slide 15: Sound financial performance
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 1 Sound financial performance Solid top-line growth High EBITDA margin Total revenue, PLN mn EBITDA, PLN mn EBITDA margin, % CAGR 225 212 215 202 +5.3% 404 408 193 389 180 184 352 347 161 167 328 336 318
Slide 16: Strategy
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 1 Strategy GPW GROUP STRATEGY 2023-2027 Pillars of growth ESG objectives Data and New business ESG support for market Trading GPW Group ESG Strategy technology models participants Financial ambitions PLN
Slide 17: Strategic initiatives
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 1 Strategic initiatives INITIATIVES FOR INVESTORS INITIATIVES FOR ISSUERS Financial and commodity New markets Expanding the offer of markets corporate solutions EQUITIES – leader of trading in Polish stoc
Slide 18: Attractive dividend policy
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 1 Attractive dividend policy Dividend yield1 6.1% 3.8% 2.0% 3.2% 4.9% 6.7% 4.4% 5.8% 7.4% 5.5% 5.2% 7.5% 6.7% dividend per share2, PLN dividend payout ratio3, % 142.3% 93.2% 97.1% 89.9% 84.0% 80.1% 77.1%
Slide 19: GPW performance vs. other European exchanges in Q3 2023
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 2 GPW performance vs. other European exchanges in Q3 2023 YoY change in EOB shares turnover (EUR)1 Velocity2 Bucharest Stock Exchange 193% Deutsche Börse 43.3% Cyprus Stock Exchange 120% BME 34.8% Zagreb
Slide 20: The largest stock exchange in CEE region
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 2 The largest stock exchange in CEE region Number of listed companies Value of equity trading EOB, YTD 751 EUR bn 49.5 22.3 253 63 68 83 89 5.3 3.9 25 2.2 0.2 0.2 Prague Budapest Vienna Bucharest Zagreb B
Slide 21: Poland's Promotion to Developed Markets
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 2 Poland’s Promotion to Developed Markets Highly appreciated Polish capital market… … aids classification of Poland amongst the 25 DMs developed markets emerging, frontier, other markets Well-developed
Slide 22: Largest economy in the CEE region
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 3 Largest economy in the CEE region Largest economy in the CEE 6th largest economy in the EU 2022 GDP (EUR bn)1 Germany 3 867 France 2 643 Italy 1 909 Spain 1 327 Netherlands 941 Poland 655 Sweden 558 Bel
Slide 23: Leader of economic growth
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 3 Leader of economic growth Solid GDP growth One of EU’s growth leaders accumulated GDP change (PPP), 2004-2022 Accumulated Poland’s GDP growth (PPP) since 2004 (EU acession): >150% growth 100-150% growth
Slide 24: Potential for retail investment growth
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 4 Potential for retail investment growth Poles’ savings1 Household assets (PLN bn)1 Deposits and cash Other 4 Investment Funds 1 981 Loans 2 1 838 1 880 7% 5% 1 635 Equities 1 483 6% 1 346 1 270 Insurance
Slide 25: Strong domestic institutional investor base
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 4 Strong domestic institutional investor base Open Pension Funds1 Investment funds in Poland2 OPF’s share in GPW turnover, % Capital Market funds, assets PLN bn OPF’s share in GPW free float, % Non-public
Slide 26: Advantageous mix of investors on GPW
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 4 Advantageous mix of investors on GPW Share of investors in trade in shares on the Main Market Share of investors in trade on the futures market [%] institutional individual foreign [%] institutional ind
Slide 27: Market data
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 4 Market data Growing number of clients and rising revenue Non-display clients No. of distributors No. of subscribers, thous. Services supporting analyses of 534 market data are an important pillar of 4
Slide 28: Diversified issuers portfolio
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 5 Diversified issuers portfolio Issuer activity on GPW markets1 Acquisition of issuers On the radar: family companies, PE funds, CEE Main Market Market cap: companies, state-owned companies and their 37
Slide 29: One of the biggest alternative markets in EU
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 5 One of the biggest alternative markets in EU GPW vs EU alternative markets Number of issuers on growth markets1 Alternative trading system financing the growth of small and medium-sized companies with
Slide 30: Opportunities for further debt market development
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 5 Opportunities for further debt market development Debt market development catalysts Low value of issued bonds as % of GDP Simplification of the corporate debt market architecture Total debt securities
Slide 31: Employee Capital Plans (PPK)
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 6 Employee Capital Plans (PPK) 2nd pillar (obligatory until 2014, 1st pillar (obligatory) now optional) 3rd pilllar (voluntary) Employee Pension Plans (PPE) IKE IKZE ZUS (social OFE Employee Capital secur
Slide 32: Open Pension Funds (OFE)
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 6 Open Pension Funds (OFE) Operation of OFEs Transfers between OFE and ZUS1 funds transferred from OFE to ZUS ("slider"), PLN mn Part of pension contributions was compulsorily transferred to open-ended
Slide 33: Employee Capital Plans (PPK)
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 6 Employee Capital Plans (PPK) PPK AuM PLN 20.2 bn in November Equities/debt share in total assets PPK AuM, PLN mn Time left to reaching 60 22 20.2 years old Equities Debt 20 18.0 18 15.7 >20 years 60-80%
Slide 34: Estimated yearly inflows into PPK
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 6 Estimated yearly inflows into PPK Estimated inflows into Polish equity market (PLN bn) Assumptions: 6.8 6.0 5.7 5.5 1. Average contribution rate: 4.5 4.7 3.5% 4.0 3.7 2. Average monthly gross salary in
Slide 35: Commodity market
About the GPW Group Business activity Highlights and opportunities Financial results Appendices 7 Commodity market TGE business goals Agricultural Market Strengthening the position of TGE – the largest trading platform for energy and Launched in 2020 energy commodities in the region – by increasin
Slide 36: Financial results by quarter
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Financial results by quarter Sales revenue EBITDA and EBITDA margin Net profit and net profit margin1 +4.5 pp PLN mn 44.6% +2.2 pp +19.9% 39.7% 41.2% 40.6% 37.4% 37.4% 112.3 110.7 35.2% 32.9% 106.1 31.1%
Slide 37: Revenue on the financial market
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Revenue on the financial market Trading Listing PLN mn PLN mn +5.0% -0.2% 41.0 40.1 6.1 38.2 37.2 38.7 5.6 5.8 Trading revenue +3.7% 5.5 5.5 -5.3% Revenue from trading up 5.0% YoY to PLN 40.1 mn in Q3’2
Slide 38: Revenue from the electricity, gas and property rights markets
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Revenue from the electricity, gas and property rights markets Q3’23: 18.9% Trading revenue – commodity market Increase in revenue from trading in electricity in Q3’23 to a record PLN PLN mn 7.9 mn (+135
Slide 39: Revenue from clearing
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Revenue from clearing Q3’23: 9.8% Revenue from clearing PLN mn Increase in revenue from clearing to PLN 10.4 mn in Q3’23 (+24.9% +24.9% YoY; -9.1% QoQ) mainly driven by a significant year-on-year 13.7 i
Slide 40: Operating expenses (OPEX) and CAPEX
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Operating expenses (OPEX) and CAPEX Operating expenses PLN mn PFSA Total employee costs in Q3’23: PLN 38.1 mn. YoY increase driven by: (1) an increase in salaries, (2) a one-off inflation +25.7% benefit
Slide 41: Share of profit of entities measured by the equity method
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Share of profit of entities measured by the equity method Share of profit of entities measured by the equity method PLN mn KDPW CG +23.6% The Group’s share of profit of entities 10.3 measured by the ent
Slide 42: GPW Group's consolidated statement of financial position
About the GPW Group Business activity Highlights and opportunities Financial results Appendices GPW Group’s consolidated statement of financial position PLN mn 30.09.2022 31.12.2022 31.03.2023 30.06.2023 30.09.2023 Non-current assets, including among others 614.6 651.6 672.9 682.8 707.1 Property, pl
Slide 43: GPW Group consolidated statement of comprehensive income
About the GPW Group Business activity Highlights and opportunities Financial results Appendices GPW Group consolidated statement of comprehensive income PLN mn Q3'22 Q4’22 Q1’23 Q2’23 Q3’23 Revenue 88.4 91.5 112.3 110.7 106.1 Financial market 58.0 57.4 66.5 61.1 65.7 Revenue up 19.9% YoY to PLN 10
Slide 44: GPW Group consolidated statement of cash flows
About the GPW Group Business activity Highlights and opportunities Financial results Appendices GPW Group consolidated statement of cash flows PLN mn 9 months period ended 30 September of 2022 2023 Total net cash flows from operating activities 196.0 119.6 Net profit of the period 107.3 112.6 Adjust
Slide 45: KDPW Group's financial results
About the GPW Group Business activity Highlights and opportunities Financial results Appendices KDPW Group’s financial results PLN mn Q3'22 Q3'23 9M’22 9M’23 Revenue 56.1 64.2 164.6 181.3 Operating expenses 34.6 37.4 101.1 113.8 Operating profit 21.5 26.7 63.6 67.5 Increase in KDPW Group’s revenue f
Slide 46: GPW Group's revenue structure, last 12 months
About the GPW Group Business activity Highlights and opportunities Financial results Appendices GPW Group’s revenue structure, last 12 months1 GPW Group: PLN 420.5 mn Financial Market: PLN 255.5 mn Commodity Market: PLN 149.6 mn 5.5% Electricity 3.2% Gas Financial Trading Shares 27.0% market Propert
Slide 47: Strategic initiatives (GPW Strategy 2018-2022)
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Strategic initiatives (GPW Strategy 2018-2022) Stock Market Derivatives Information Debt Market Commodity Market New business lines Market Products Securities Exchange Traded Organized Bond market GPW Pri
Slide 48: Financial market: Trade in equities
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Financial market: Trade in equities Equity turnover value and number of transactions Average number of transactions per session, thous. Value of trading in equities, PLN bn 133.2 135.9 131.4 130.8 120.7 8
Slide 49: Financial market: Trade in derivatives
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Financial market: Trade in derivatives Derivatives turnover volume Number of open interest, thous. Volume, mn. 406.6 351.2 371.6 330.1 290.0 184.8 165.0 171.2 138.1 140.1 143.6 104.2 15.6 12.6 12.0 11.5 1
Slide 50: Financial market: Other instruments and fees paid by participants
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Financial market: Other instruments and fees paid by participants Treasury BondSpot Poland turnover value 3.3%1 Cash Transactions, PLN bn Repo Transactions, PLN bn 845 767 347 599 327 535 474 260 413 407
Slide 51: Financial market: Listing
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Financial market: Listing Capitalisation of domestic companies on the Main Market Market Cap/GDP, % Market Cap of local companies, PLN bn 36.5% 34.8% 34.8% 30.0% 30.0% 28.9% 27.2% 25.0% 23.6% 20.9% 671 70
Slide 52: Financial and commodity market: Information services
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Financial and commodity market: Information services Number of data vendors Local Remote 96 99 95 87 90 83 78 36 36 36 35 37 58 58 37 54 53 52 36 34 31 30 28 27 60 59 63 13.9%1 50 55 42 46 24 27 24 25 25
Slide 53: Commodity market: Trade in electricity and gas
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Commodity market: Trade in electricity and gas Electricity turnover volume1 Spot, TWh Forward, TWh 243.2 226.1 228.9 225.2 34.8 27.7 33.9 36.2 186.8 186.7 176.6 23.8 25.1 22.3 141.4 126.7 111.7 33.0 114.2
Slide 54: Commodity market: Trade in property rights
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Commodity market: Trade in property rights Property rights spot turnover 2 Green certificates (RES), TWh Cogeneration certificates, TWh 58.9 58.1 59.3 50.2 43.9 26.6 30.8 39.3 29.8 36.0 24.0 25.9 27.0 25.
Slide 55: Commodity market: Register of Certificates of Origin
About the GPW Group Business activity Highlights and opportunities Financial results Appendices Commodity market: Register of Certificates of Origin Volume of issued certificates of origin Green certificates (RES), TWh Cogeneration certificates, TWh 50.7 47.2 48.5 47.5 42.2 23.4 18.9 19.9 35.1 24.5
Slide 56: IR events Contact: GPW Investor Relations
IR events Disclaimer 5-6 December 2023 This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for its shareholders, analysts, and other Wood’s Winter Wonderland, WOOD & Company, Praga contractors. This presentation has been
Warsaw Stock Exchange Group — Investor Presentation (December 2023) on 6ix