Gielda Papierow Wartosciowych W Warszawie S.a. · GPW:GPW

Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie — Q2 2016 Earnings Presentation

31 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, Jul 29, 2016

  1. Slide 1: GPW Group Financial Results Q2 2016

    GPW Group Financial Results Q2 2016 29 July 2016

  2. Slide 2: Summary of GPW Group Activities in Q2 2016

    Summary of GPW Group Activities in Q2 2016 GPW Group Financial Results Q2 2016

  3. Slide 3: Q2 2016: improving profitability

    Q2 2016: improving profitability1 Revenue Net profit Reported PLN mn PLN mn Q2 2016 Net results +28.9% results -8.1% Net profit 81.0 45.6% 39.1% 77.2 33.9 margin 74.5 -3.5% 27.0 26.3 +25.8% EBITDA margin 57.8% 56.0% Net profit PLN 33.9 mn PLN 29,1 mn Operating PLN 38.0 mn PLN 39.3 mn expenses EBITDA

  4. Slide 4: New clients partly offset lower activity of other investor groups

    New clients partly offset lower activity of other investor groups Activity of new GPW clients on the equity market  Decrease of trading in equities in Q2 2016 by 18.5% YoY reflecting decrease of average2 capitalisation by New clients Average trade in equities per session (double counted) 19.1% New

  5. Slide 5: Growing volumes on the futures markets

    Growing volumes on the futures markets Activity of new GPW clients on the WIG20 futures market New clients (1)  Volume of trade in WIG20 futures in Q2 2016 (1.20 Average volume of derivatives trading (double counted) New clients' share in trading (right scale) mn contracts): one of the highest sinc

  6. Slide 6: Dividend policy still attractive

    Dividend policy still attractive GPW’s attractive dividend continues Dividend per share (PLN)1 Dividend payout ratio2 Dividend yield3 142.3% 89.9% 80.1% 45.2% 44.5% 31.0% 6.1% 4.9% 6.7% 3.8% 3.2 3.3% 2.0% 2.4 2.36 1.4 1.2 0.8 2010 2011 2012 2013 2014 2015 DIVIDEND POLICY: to pay out over 60% of cons

  7. Slide 7: Commodity market in Q2 2016

    Commodity market in Q2 2016 Volumes of spot and forward trade in electricity and gas  Electricity forward market: aversion against contracts with Electricity (TWh) Natural gas (TWh) delivery in 2017 and 2018 58.9 35.5  uncertainty about energy prices (coal prices, RES auction 30.7 30.2 29.1 volume

  8. Slide 8: Summary of GPW Group Activities in Q2 2016

    Summary of GPW Group Activities in Q2 2016 GPW Group Financial Results Q2 2016

  9. Slide 9: Solid profitability despite lower revenue

    Solid profitability despite lower revenue Net profit & net profit margin Revenue EBITDA & EBITDA margin PLN mn, % PLN mn PLN mn, % 53.8% 53.8% 57.8% 45.6% 48.9% 50.5% 35.0% 38.2% 33.7% 32.5% -3.5% 83.8 81.0 77.2 78.7 25.8% 74.5 13.9% 33.9 45.1 30.1 42.3 41.0 43.0 27.0 28.2 37.8 26.3 Q2’15 Q3’15 Q4’1

  10. Slide 10: Trading revenue on the financial market impacted by lower trade in equities and reduced fees

    Trading revenue on the financial market impacted by lower trade in equities and reduced fees Q2’16: 35.7% Trading revenue: financial market PLN mn  Further decrease of the average fee on the equities market to 2.22 bps (vs 2.49 bps in all of 2015)  result of GPW’s decision to reduce fees from the

  11. Slide 11: Stable listing revenue

    Stable listing revenue Q2’16: 8.2% Listing revenue PLN mn  Revenue from listing fees stable YoY despite a decrease in capitalisation of companies (-18.0% YoY) -6.2% 6.5 6.0 5.9 6.1  Increase in revenue from fees for introduction and 5.7 +4.4% admission QoQ as a result of more ECM activity in Q2 20

  12. Slide 12: Growing share of revenue from information services in GPW Group’s revenue

    Growing share of revenue from information services in GPW Group’s revenue Q2’16: 13.8% Revenue from information services PLN mn  Sustained high growth rate of the number of new non-display data contracts: 35 clients at the end of Q2 2016 vs 29 clients in Q1 2016 7.8%  Continued growth in the numbe

  13. Slide 13: Growing share of trading revenue in Q2 YoY

    Growing share of trading revenue in Q2 YoY Q2’16: 19.0% Trading revenue: commodity market  Decrease in revenue from trade in electricity (-21.1% PLN mn YoY) due to decrease in volumes (-27.9% YoY) offset by increase in volumes in gas (+43.0% YoY) 3.6%  Increase in revenue from trade in property ri

  14. Slide 14: Growing activity of register participants YoY

    Growing activity of register participants YoY Q2’16: 10.5% Revenue from the register of certificates of origin PLN mn  Growing revenue and flattened seasonality of the 42.0% register of certificates of origin with the extended obligation of cancelling certificates by the end of 8.0 7.8 -2.0% June 5

  15. Slide 15: Operating expenses impacted by strict cost regime and changes in booking of supervision fees

    Operating expenses impacted by strict cost regime and changes in booking of supervision fees Operating expenses PLN mn  No GPW Group fees for capital market supervision 45.0 45.9 46.1 43.3 (PFSA) following change in rules of booking rules PFSA fees 5.8 4.6 5.9 11.2 38.0 (all fees booked in Q1 2016)

  16. Slide 16: Share of profit of associates

    Share of profit of associates Share of profit of associates  Results of KDPW Group: Aquis KDPW CG PLN mn  higher result of KDPW Group in Q2 2016 driven by increase of 1.4 revenue from one-off fees from corporate actions and change 0.3 fees for capital market supervision (PFSA) and their booking ru

  17. Slide 17: GPW Group’s consolidated balance sheet

    GPW Group’s consolidated balance sheet As of:  Increase in cash at the end of Q2 2016 PLN mn 30.06.2015 31.03.2016 30.06.2016 driven by generated cash flows from Non-current assets, including among others 572.3 577.0 579.6 operations and decrease in trade and Property, plant and equipment 112.1 122

  18. Slide 18: Annex – Back-up Slides

    Annex —- Back-up Slides

  19. Slide 19: GPW Group’s Consolidated P&L

    GPW Group’s Consolidated P&L PLN mn Q2 2015 Q1 2016 Q2 2016  Financial income increased in Q2 2016 due Revenue 77.2 81.0 74.5 to revaluation of GPW’s interest in Aquis Exchange (AE shares issued in June 2016 Financial market 49.2 44.5 43.0 at a price higher than paid by GPW); first Trading 33.1 28.

  20. Slide 20: GPW Group’s consolidated cash flows

    GPW Group’s consolidated cash flows 6m ended on 30 June PLN mn 2015 2016  Increase in cash due to changes in Cash flows from operating activities, including among others: 64.9 147.1 trade and other receivables as well as Cash flows from operating activities 66.8 160.1 other liabilities, driven by c

  21. Slide 21: GPW’s position vs European exchanges

    GPW’s position vs European exchanges Capitalisation Value of trade in equities, EOB1 Number of listed companies Borsa Istanbul 180.4 Borsa Istanbul 167.0 GPW 896 GPW 116.4 GPW 19.7 Borsa Istanbul 389 2 2 CEESEG 104.5 CEESEG 17.6 Bulgarian SE 357 CEESEG - Vienna 78.3 CEESEG - Vienna 14.6 CEESEG2 153

  22. Slide 22: GPW Group’s revenues by category

    GPW Group’s revenues by category 318.0 mln zł 128.0 mln zł Other revenue Clearing 30.7% Register of Certificates of origin Commodity 19.3% 40.2% Trading - other market: 40.2% 6.0% Trading in property rights 25.9% Trading in gas 6.6% Trading in energy 11.5% 12.5% Information services GPW Group’s reve

  23. Slide 23: Financial market – trade in equities

    Financial market – trade in equities Value of trade in equities and number of transactions Average number of transactions EOB (PLN bn) per session (thou.) 25.8%1 60.8 65.9 62.4 71.2 55.3 55.5 51.4 51.9 48.4 46.4 45.0  Revenue drivers: 38.2 251  Value of trade in equities 19.8 231 207 220 205 203 -

  24. Slide 24: Financial market – trade in derivatives

    Financial market – trade in derivatives Volume of trade in derivatives NOI, thou. 4.1%2 Volume of trade, mn contracts 184.8 168.1 132.8 137.2 138.1 139.0 131.0 123.0 104.2  Revenue drivers: 78.5 80.4 15.5 64.6 13.8 14.7  Volume of trade in futures 12.6 12.6 -6.7% 40.3 11.3 9.9 9.5 6.7 8.2 5.6  Nu

  25. Slide 25: Financial market – other instruments and fees paid by participants

    Financial market – other instruments and fees paid by participants Value of trade on Treasury BondSpot Poland, PLN bn Cash Conditional 3.3%1 1,037 1,062 307 845 450 767 w2.3%2 347 327 599 -46.0% 260 324 731 326 213 612 166 161 135 498 152 176  Revenue drivers: 84 101 439 339 188 174 122 54  Value

  26. Slide 26: Financial market – listing

    Financial market – listing Capitalisation of domestic companies Capitalisation/GDP (%) 8.2%1 Capitalisation of domestic companies (PLN bn) 40.3%41.6% 36.8% 36.5% 34.8% 32.0% -18.0% 31.0% 30.7% 29.5% 27.9%  Revenue drivers: 20.0% 593 591 605  Capitalisation at YE 438 510 421 543 446 523 517 496 308

  27. Slide 27: Financial market – information services

    Financial market – information services Number of data vendors Local Foreign 13.8%1 57 58 58 58 56 52 54 50 50 51 48 43 37 34 31 30 37 37 30 33 28 27 31 32 26  Revenue drivers: 26 24 27 24 26 23  Number of data vendors 17 21 19 18 19 20 21 11  Number of subscribers 2005 2006 2007 2008 2009 2010 2

  28. Slide 28: Commodity market – trade in electricity and gas

    Commodity market – trade in electricity and gas Volume of trade in electricity (TWh)1 Spot Forward 186.7 186.7 6.7%2 176.6 22.3 23.7 25.1 126.7 132.0 -26.1% 19.8 19.1 89.7 81.7  Revenue drivers: 7.6 154.3 163.0 161.6 12.9 66.3 106.9 112.9 14.2  Volume of trade in electricity 74.1 76.8 52.1 2.0 1.7

  29. Slide 29: Commodity market – trade in property rights

    Commodity market – trade in property rights Trade in property rights(TWh) Green certificates 62.2 9.5%1 Cogeneration certificates 58.9 48.8 50.8 19.9 -9.3% 44.8 26.6 13.2 15.1 39.3 36.0 34.3 29.9 31.1 21.8 14.5  Revenue drivers: 42.4 13.4 35.6 35.7 32.1 35.2 32.3  Volume of trade in property 3.6 4

  30. Slide 30: Commodity market – Register of Certificates of Origin

    Commodity market – Register of Certificates of Origin Volume of issued property rights(TWh)1 RES certificates 50.7 10.5%1 Cogeneration certificates 41.1 42.2 37.2 -7.1% 36.6 23.4 31.9 15.3 10.8 10.7 29.5 21.6 28.2 27.6 26.2  Revenue drivers: 11.9 12.5 11.3 25.8 26.6 25.9 27.3  Volume of issued pro

  31. Slide 31: IR events and contact: GPW Investor Relations

    IR events Disclaimer  29 July 2016 This presentation has been prepared by Giełda Papierów Wartościowych Publication of GPW Group’s Consolidated Interim Report for w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for its H1 2016 shareholders, analysts, and other contractors. This prese

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